You would distribute multiply every thing inside the parenthesis by the number on the out side of it on the the left the go to the other side of the addition sign and do the same then combine like terms
Answer:
1.875.
Step-by-step explanation:
Step 1: Multiply the whole number by the denominator: 1 × 8 = 8.
Step 2: Add the product you got in Step 1 to the numerator: 8 + 7 = 15.
Step 3: Divide the sum from Step 2 by the denominator: 15 ÷ 8 = 1.875.
Answer:
D) 7.5%
Step-by-step explanation:
Using dividend growth model,
Price, P = D / (r - g)
where, D = Dividend, r = cost of equity = 10% , and g= growth rate
we know that
=> r - g = D / P = Dividend yield = 2.5%
=> Growth rate, g = 10% - 2.5% = 7.5%
therefore the constant growth rate in dividends is closest to= 7.5%
