Answer:
The dividend growth rate is 8%.
Explanation:
Considering the stock is the one that has a constant dividend growth, we use the DDM approach for constant growth model. The constant growth model formula for price of a stock today is,
P0 = D1 / r - g
Where,
- D1 is the dividend in the next period or D0 * (1 + g)
- r is the required rate of return
- g is the growth rate in dividends
Plugging in the available value,
30 = 1.25 ( 1+g) / (0.125 - g)
30 * (0.125 - g) = 1.25 + 1.25g
3.75 - 30g = 1.25 + 1.25g
3.75 - 1.25 = 30g + 1.25g
2.5 / 31.25 = g
g = 0.08 or 8%
Answer:
10.64 years
Explanation:
To find the number of years , use this formula :
FV / PV = (1 + r) ^n
FV = Future value = $1 million
P = Present value = $560,000.
R = interest rate = 5.6%
N = number of years
$1,000,000 / $560,000 = (1.056)^n
1.785714 = (1.056)^n
Find the In of both sides
n = 10.64 years
Answer:
<u>Investment analyst</u>
<u>Explanation:</u>
Since the team is thinking of investing in Wizard’s stock but has not yet decided it is the role of an investment analyst to prepare a detailed report on the stock’s performance and investment potential (from his personal experience) of Wizard's stock.
It is the result of the report that would <em>guide the team's decision</em> of investing or not.
<span>D) A numerical rating that expresses how likely you are to repay your debts.</span>
Answer:
5 servings of fries and 2 burgers
Explanation:
The optimal solution to the maximization problem of a consumer is equivalent to the ratio of marginal utilities of goods and it is also equal to the price ratio of the goods. Mathematically:
The burgers and fries marginal utilities are 
and 
respectively while their prices are 
and 
respectively. Thus,
Further simplification:
F/B = 5/2 ; F = 2.5B
Using Antonio's budget income,
B = income/ - ( / )*F
If we use the values in the problem, we have:
B = 20/5 - (2/5)*F = 4 - 0.4F
if we substitute F = 2.5B
B = 4 - 0.4*2.5B
B = 4 - B
B = 4/2 = 2
F =2.5B = 2.5*B = 2.5*2 = 5
Thus, given the budget constraint of Antonio, he can maximize his utility by eating 5 servings of fries and 2 burgers.
