Answer:
a) For this case we want to find an equation on the following form:
And if we use excel as we can see on the figure attached the best model is:
b) For this case we can use the relative change in order to calculate the % of variation between 2010 and 2017:
c) If we use the model created we just need to replace x =8 and we got:
And the difference respect the observed values is:
Explanation:
For this case we have the following data, let X= the amount of years since 2009. Because if we select starting from 0 the natural log of 0 not exists.
t x y
2010 1 92.0
2011 2 101.0
2012 3 112.0
2013 4 124.0
2014 5 135.0
2015 6 149.0
2016 7 163.0
2017 8 180.0
Part a
For this case we want to find an equation on the following form:
And if we use excel as we can see on the figure attached the best model is:
Part b
For this case we can use the relative change in order to calculate the % of variation between 2010 and 2017:
Part c
If we use the model created we just need to replace x =8 and we got:
And the difference respect the observed values is:
Answer:
The stock should sell for = $2.01
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>
<em>The model is given as </em>
P = D× g/(r-g)
P- stock value, g- growth rate , r-m required rate of return
PV of dividend in year 30 = 12/(0.15- 0.06)=133.3333333
PV of dividend in year in year 0 = 133.3333333 × 1.15^(-30)= 2.01
The stock should sell for = $2.01
Answer: $74100
Explanation:
Based on the information given, the amount of cash expected to be collected in October will be calculated thus:
October, credit sales will be:
= 60% x $247000
= $148200
Since the amount that'll be collected in October will be 50% of the credit sales. This will be:
= 50% × $148200
= $74100