Because they might misuse your information
Answer:
$13.19
Explanation:
Data given
Annual dividend = $1.48
Increase percentage annually = 2.5%
Discount rate percentage = 14%
The computation of price is shown below:-
Price = Dividend ÷ (Cost of equity - Growth rate)
= ($1.48 × 1.025) ÷ (0.14 - 0.025)
= $1.517 ÷ 0.115
= $13.19
Therefore for computing the price we simply applied the above formula.
<u>A. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.</u>
This is the false statement.
<u>Explanation</u>:
The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.
The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.
Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.
Answer:
Minimize Z = 3x + 2y
Explanation:
Let x represent hamburger meal and let y represent hot dog meal. The objective is to minimize the total cost. The objective function will be
Z = 3x + 2y
The maximum capacity of restaurant is 200 meals while it has minimum cap for 100 meals.
