The current price of the stock given the dividend, cost of equity and growth rates is $46.90.
<h3>What is the current stock price?</h3>
Thw two-stage dividend growth model would be used to determine the value of the stock.
First stage:
- dividend in Y1 = 1.20x 1.12 = 1.344
- dividend in Y2 = 1.20 x 1.12^2 = 1.505
- dividend in Y3 = 1.20 x 1.12^3 = 1.69
Second stage:
Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059
Find the present value of these cash flows
(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90
To learn more about the two stage dividend model, please check: brainly.com/question/26564273
Answer:
the correct answer is 3
Step-by-step explanation:
4x+24-2=7(4x+2)
4x+22=7*4x+2*7
4x+22=28x+14
4x-28x=14-22
-24x=-8
24x=8
x=3
I'm not 100% positive but if my calculations are right then there is a 7.2% chance that a green bead will be drawn 25 times. I hope that helped.
Get them to have the same number on the bottom by finding the lowest common number when multiplying which would be multiplying them by each other by you also have to multiply the top number so for 1/5 multiply 1 & 5 by 3 and you get 3/15 then the same for 1/3 but multiply by 5 so it'll be 5/15 add them and you get 8/15 so you have 7/15 left.