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3 years ago

What is the value of a share of Henley Inc. to an investor who requires a 11 percent

Mathematics

1 answer:

Karolina [17]3 years ago

4 0

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

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Porter recycles 10 steel cans every week. Which expression shows the total number of steel cans he recycles in w weeks?

Alik [6]

A) 10w. You wouldn't add the 10 cans to the number of weeks to get the total and you wouldnt add 10 cans to the # of 10 cans times the # of weeks. a) 10w is the correct answer.

4 0

3 years ago

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Suppose that in one region of the country the mean amount of credit card debt perhousehold in households having credit card debt

kvv77 [185]

Answer:

The probability that the mean amount of credit card debt in a sample of 1600 such households will be within $300 of the population mean is roughly 0.907 = 90.7%.

Step-by-step explanation:

To solve this question, we have to understand the normal probability distribution and the central limit theorem.

Normal probability distribution:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean $\mu$ and standard deviation $\sigma$ , the zscore of a measure X is given by:

$Z = \frac{X - \mu}{\sigma}$

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

Central limit theorem:

The Central Limit Theorem estabilishes that, for a random variable X, with mean $\mu$ and standard deviation $\sigma$ , a large sample size can be approximated to a normal distribution with mean $\mu$ and standard deviation $s = \frac{\sigma}{\sqrt{n}}$

In this problem, we have that:

$\mu = 15250, \sigma = 7125, n = 1600, s = \frac{7125}{\sqrt{1600}} = 178.125$

The probability that the mean amount of credit card debt in a sample of 1600 such households will be within $300 of the population mean is roughly

This probability is the pvalue of Z when X = 1600 + 300 = 1900 subtracted by the pvalue of Z when X = 1600 - 300 = 1300. So

X = 1900

$Z = \frac{X - \mu}{\sigma}$

By the Central Limit Theorem

$Z = \frac{X - \mu}{s}$

$Z = \frac{1900 - 1600}{178.125}$

$Z = 1.68$

$Z = 1.68$ has a pvalue of 0.9535.

X = 1300

$Z = \frac{X - \mu}{s}$

$Z = \frac{1300 - 1600}{178.125}$

$Z = -1.68$

$Z = -1.68$ has a pvalue of 0.0465.

0.9535 - 0.0465 = 0.907.

The probability that the mean amount of credit card debt in a sample of 1600 such households will be within $300 of the population mean is roughly 0.907 = 90.7%.

7 0

3 years ago

Find the volume of the solid figure shown below. The area of the base is 40 square inches and the height of the figure is 7 inch

Marrrta [24]

Answer:

$\displaystyle V _{ \text{cuboid}} =280 {in}^{3}$

Step-by-step explanation:

we are given the base area and the height of a solid figure

since the base area is not perfect square

we assure the solid figure to be a cuboid

remember that,

$\displaystyle V _{ \text{cuboid}} = l\times w \times h$

we are given l×w is 40 and h is 7

so substitute

$\displaystyle V _{ \text{cuboid}} =40 \times 7$

simplify multiplication:

$\displaystyle V _{ \text{cuboid}} =280$

hence,

the volume of the figure is 280 in³

4 0

3 years ago

Which of the following is equal to the opposite of −45? −|45| −(−45) −|−45| −45

inessss [21]

Answer:

Step-by-step explanation:

It's B because two negatives equal a positive.

C. The absolute value of -45 is 45, leaving the extra negative to hang on in there ---> -|-45|= 45= (bring the negative back over) -45

D. Self explanatory its -45 alone lol.

7 0

3 years ago

I need help solving 5(-3x-2)-(x-3)=-4(4x+5)+13

evablogger [386]

Answer:

Infinite solutions

Step-by-step explanation:

5(-3x-2)-(x-3)=-4(4x+5)+13

-15x-10-x+3=-16x-20+13

-16x-7=-16x-7

-16x=-16x

-x=-x

x=x

There are infinite many solutions

3 0

4 years ago

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