3 quarters (75cents) and 10 nickels (50cents) = 1.25$
Answer:
Value of Henley Inc.'s share is $16.76
Step-by-step explanation:
The present value of the dividends over for the three years and the terminal value of the dividends would give us a fair share price that an investor would pay
Year 1 PV of dividends=$1.10/(1+11%)^1=$0.99
Year 2 PV of dividends=$1.10/(1+11%)^2=$0.89
Year 3 PV of dividends=$1.10/(1+11%)^3=$0.80
The terminal value formula=dividend*(1+g)/(r-g)
g is the dividend growth rate of 5%
r is the investor's required rate of return which is 11%
terminal value=$1.10*(1+5%)/(11%-5%)=$19.25
The terminal is discounted to present value using the discount factor of year 3
PV of terminal value =$19.25
/(1+11%)^3=$ 14.08
Total present values=$0.99+$0.89+$0.80+$14.08 =$16.76
Answer:
{x,y} = {1/3,1/9}
Step-by-step explanation:
Solution :
{x,y} = {1/3,1/9}
System of Linear Equations entered :
[1] 4x + 6y = 2
[2] -4x + 3y = -1
Graphic Representation of the Equations :
6y + 4x = 2 3y - 4x = -1
Solve by Substitution :
// Solve equation [2] for the variable y
[2] 3y = 4x - 1
[2] y = 4x/3 - 1/3
// Plug this in for variable y in equation [1]
[1] 4x + 6•(4x/3-1/3) = 2
[1] 12x = 4
// Solve equation [1] for the variable x
[1] 12x = 4
[1] x = 1/3
// By now we know this much :
x = 1/3
y = 4x/3-1/3
// Use the x value to solve for y
y = (4/3)(1/3)-1/3 = 1/9
Solution :
{x,y} = {1/3,1/9}
