The what-if analysis tool would be the most adequate choice for intricate calculations that need contrived optimization:
b). Scenario manager
- 'What-if analysis tool' is described as the tools that are employed to alter the values present in the cells.
- It is done to observe the effect of changing the values impact the results produced by the used formula.
- The what-if analysis tools have been categorized into three distinct types:
- a). Scenarios.
- b). Goal Seek.
- c). Data Tables.
- As per the question, in order to opt for complex calculations, 'Scenarios' what-if analysis would be most adequate as they examine a number of variables and set of numbers/values that affect the outcome.
Thus, <u>option b</u> is the correct answer.
Learn more about 'what-if tool' here:
brainly.com/question/14830872
Answer:
Intrinsic value: $ 45.19290274
The stock is undervalued as is selling for less.
Explanation:
We use the gordon model to solve for the intrinsic value of the share.

we must solve for the grow rate like it was an interest rate:
<u>grow rate: </u>
![2.00 \times (1+g)^{10} = 3.16\\\sqrt[10]{\frac{3.16}{2.00}} -1 = g](https://tex.z-dn.net/?f=2.00%20%5Ctimes%20%281%2Bg%29%5E%7B10%7D%20%3D%203.16%5C%5C%5Csqrt%5B10%5D%7B%5Cfrac%7B3.16%7D%7B2.00%7D%7D%20-1%20%3D%20g)
g = 0.046804808
<u>dividends one year from now:</u>
3.16 x (1 + 0.046804808) = 3.307903193
Now we calculate the instrinsic value:

Value: $ 45.19290274
The stock is undervalued as is selling for less.
Answer:
a) ME= 1.93
b) confidence interval= (19.59,23.45)
Explanation:
a) Sample of customers is 64, population standard deviation is 6 and confidence level is 99%
Sample mean= 21.52
Sample size= 64
Confidence level= 99%
Population standard deviation= 6
Standard error of the mean= 0.75
Z-value= -2.5758 (From Z table)
Interval half width= 1.9319
Margin of error at 99% confidence interval is 1.93 from the output.
b) Confidence interval
Interval upper limit= 19.59
Interval lower limit= 23.45
99% confidence interval is (19.59, 23.45) from the output.
ME=
= 1.93
Answer:
Market risk premium.
Explanation:
The difference between average annual returns on common stocks and returns on long-term government bonds is called a market risk premium.
Basically, market risk premium is typically determined by taking the slope of a security market line (SML); which is used by economist as a graphical representation of the capital asset pricing model (CAPM).
Market premium risk is used to determine the quantitative measure of the extra return demanded by market participants for the increased risk.