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Blababa [14]
3 years ago
10

Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm w

ill, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent
Business
1 answer:
xz_007 [3.2K]3 years ago
4 0

Answer:

$44.52

Explanation:

The value of the stock today can be determined by finding the present value of the liquidating dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 17

Cash flow in year 1 = 32

I = 6%

PV = $44.52

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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netineya [11]

Answer: Large Cash Prize is A. 0000001

Small Cash Prizes is B. 0.16

Free Samples is C. About 0.84

Explanation:

Large Cash Price

The probability of winning 1 large Cash price is 1 out of 10 million so that would be,

= 1/10,000,000

= 0.0000001 which is option A

Small Cash Prices

Probability of winning a Mall Cash price is 1,600,000 out of 10,000,000 which would be,

= 1,600,000/10,000,000

= 0.16 which is Option B

Free Samples

Winning free samples of the Company's products would be,

= 10,000,000 - 1,600,000 - 1

= 8,399,999

Now we divide by 10,000,000

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= 0.84 so option C

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3 years ago
The value of which of these expressions is closest to e?
coldgirl [10]

Answer: B

Explanation:

Therefor, value 2.659 is closest to the value of e

( I hope this helped of not I’m sorry)

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2 years ago
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Schach [20]

Answer:

There are 3 cases

The First case

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Explanation:

See attached images for the other two cases

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