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aev [14]
3 years ago
14

b) Chill Pill Pharmaceuticals is expecting a growth rate of 14% for the next two years due to its new drug. Thereafter it should

level to an 8% growth rate. The last dividend paid was $0.65 per share. What price should the stock sell for if investors require 12% return?
Mathematics
1 answer:
Wittaler [7]3 years ago
8 0

Answer:

0.20

Step-by-step explanation:

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Write the exponential function.
sertanlavr [38]

Answer:

f(x) = 10*(b)^x

Step-by-step explanation:

exponential function : y=a*(b)^x

where a = y intercept and b = factor ( what you multiply by )

looking at the table the y intercept is at (0,10) so a = 10

so we now have y = 10 * (b)^x

to find the factor we simply plug in one of the ordered pairs.

note that the ordered pair chosen does not effect the outcome

i chose (2,250)

we have y = 10 * (b)^x

(x,y) = (2,250)

250 = 10 * (b)^2

divide both sides by 10

25 = b^2

take the square root of both sides

5 = b

the final equation would be f(x) = 10 * (b)^x

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Charlie is at a small airfield watching for the approach of a small plane with engine trouble. He sees the plane at an angle of
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<span>X would be the ground distance from Charlie to the plane 
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