The number means: which exponent we have to give to 9 in order to get 81?
Since , the answer is 2.
$2.49 -------------------100 %
$1.99 ------------------- x %
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2.49 : 1.99 = 100 : x
x = ( 1.99 * 100 ) / 2.49 = 79.9 %
100 % - 79.9 % = 21.1 % ( Decrease )
$1.99 -------------------- 100 %
$2.49 -------------------- x %
------------------------------------
1.99 : 2.49 = 100 : x
x = ( 2.49 * 100 ) / 1.99 = 125.1 %
125.1 % - 100 % = 25.1 % ( Increase )
The percents of change are not the same.
The greater change is during the increase of price ( 25.1 % > 21.1 % ).
Answer:
price = $151.43
Step-by-step explanation:
Given data:
dividend = $3.5M
Growth percentage = 7.3% per year
Number of share is 800,000
Price for stock can be calculated as
here,
Ke = 10.4%
g = 7.3%
dividend per share = $4.375 PER SHARE
So we have
price = $151.43