It is c I had this question also
Answer:
A. Holiday lights in mid-December: Scarce on occasion: Holiday lights are only scarce on holiday season when the demand increases.
B. Air regardless of quality: Not scarce
: Only high quality air (clean) is scare.
C. Land: Inherently scarce: No matter what we do, our planet is only one.
D. Patented goods: Artificially scarce: Patents are scarce because a law protects them.
E. Original Picasso paintings: Inherently scarce: Picasso is dead, so he cannot paint anymore.
A i think, did btec childcare
Answer: $8.81
Explanation:
To solve this, add the present values of the dividends from years 3, 4 and 5 and then add the present value of the terminal value of the stock at year 5.
Year 3 dividend = $0.50
Year 4 dividend = 0.50 * (1 + 49%) = $0.745
Year 5 dividend = 0.745 * 1.49 = $1.11005
= Dividend in year 3 / (1 + required rate of return)³ + Dividend in year 4 / (1 + required rate of return)⁴ + Dividend in year 5 / (1 + required rate of return)⁵ + (Dividend in year 5 * (1 + growth rate) / ( required rate of return - growth rate ) ) / (1 + required rate of return)⁵
= 0.5 / 1.16³ + 0.745/1.16⁴ + 1.11005/1.16⁵ + ( 1.11005 / (16% - 9%)) / 1.16⁵
= $8.81
