Answer:
-7.407%
Explanation:
Let interest rate be x%
Present value of payment = $130,002 * PV of discounting factor (rate%, time period)
$103,200 = $130,002 * 1.0x^3
1.0x^3 = $103,200 / $130,002
1.0x = ($103,200 / $130,002)^(1/3)
1.0x = 0.793834^(1/3)
1.0x = 0.92592660981
x = (0.92592660981 - 1) * 100
x = -0.07407*100
x = -7.407%
Your answer is a command economy. Good Luck.
Answer:
If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .
Explanation:
Price today = Present Value of Dividends
Present Value of Dividends :
Year Dividend Discounting Factor(9.7%)
0 3.0000
1 8.00 0.9115770282588880
2 13.00 0.8309726784493050
3 18.00 0.7574956047851460
4 23.00 0.6905155923292130
year Present Value(Dividend* Discounting factor)
0
1 7.2926162260711000
2 10.8026448198410000
3 13.6349208861326000
4 15.8818586235719000
Present Value of Dividends 47.612040555616600
Therefore, If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .
Answer:
3.6%
Explanation:
965x = 1000
x = 1.03626
That’s an interest rate of 3.6%.
