Answer:
For a better valuation of trade.
Explanation:
Mackay could have left out this list and simply said that the root cost 2500 florins. But he gave the list to have a better understanding of the valuation of trade. Now, the cost could have simply being layed out. But then this list helped helped to give a better perspective of the valuation of the bulb and also how it could be used to replace money
Answer:
marginal cost is 15 cents
Explanation:
given data
car rent = $29.95
distance d1 = 150 miles
cost = 15 cents per miles
distance d2 = 200 miles
to find out
marginal cost
solution
first we find here cost for driving d2
cost for 150 to 200 miles = 15 × 50
cost for 150 to 200 miles = 750 cents = $7.5
so
cost for driving d2 = $7.5 + $29.95
cost for driving d2 = $37.45
so
marginal cost will be
marginal cost = change in cost / chance in distance
marginal cost = 37.45 - 39.95 / ( 200-150)
marginal cost = 7.5 / 50 = 0.15
marginal cost is 15 cents
Answer:
Price of the stock today = $82.35
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 8 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $2.50
Total of dividends from year 1 to year 8 = $23.46345631521910
Year 8 dividend = 8.77863318950395
Therefore, we have:
Year 9 dividend = Year 8 dividend * (100% + Dividend growth rate in year 9) = 8.77863318950395 * (100% + 7%) = 9.39313751276923
Price at year 8 = Year 9 dividend / (Rate of return - Perpetual dividend growth rate) = 9.39313751276923 / (13% - 7%) = $156.552291879487
PV of price at year 8 = Price at year 8 / (100% + Required return)^Number of years = $156.552291879487 / (100% + 13%)^8 = $58.88868846568915
Price of the stock today = Total of dividends from year 1 to year 8 + PV of price at year 8 = $23.46345631521910 + $58.88868846568915 = $82.35
