The correct answer is D
The question is incomplete. See the complete one below:
Dividends per share at time 1: Div 1 1.00
Dividends per share at time 2: Div 2 1.20
Dividends per share at time 3: Div 3 1.44
Growth Rate after time 3 forever: g 0.05
Discount Rate: r 0.10
Find the price per share of United Bird Seed at time 0
Answer:
Stock price = $24.703
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would arise from the asset discounted at the required rate of return.
In this question, the cash flows are the dividends as given in the question and the rate of return (discount rate) is 10%
The Present Value of a future cash flow is the amount that needs to be invested today at a particular rate of return to equal the same cash flow in the future. Present value means the value in year 0 or now
The idea is premised on the concept of the time value of money. The idea that $1 today is not the same as $1 tomorow. The $1 of today is worth more than that of tomorrow; and because of the opportunity to earn interest.
So if an asset (e.g a stock) promises some cash flows in the future, those cash flows need to be brought to their present values and then be added to arrive at the value of the asset
The process of calculating the present value of a future sum is called discounting. So to calculate the stock price in this question, we shall discount the future dividends using the required rate of return and then add them together.
This is done as follows:
PV of Div. in year 1= 1.00/(1.10)= 0.909
PV of Div. year 2= 1.20/(1.10)²= 0.992
PV of Div in year 3= 1.44/(1.10)³=0.082
PV (in year 3) of Div payable in year 4 and beyond = (1.44×1.05)/(0.10-0.05)= 30.24.
PV (in year 0) of Div payable in year 4 and beyond= 30.24/(1.10)³= 22.720
Stock price = Sum of the PV of the future dividends
=0.909+0.992+0.082+22.720= $24.703
B) Payer.
C) Beneficiary.
D) Insured.
b. decreases, and the equilibrium quantity of labor decreases.
c. decreases, and the equilibrium quantity of labor increases.
d. increases, and the equilibrium quantity of labor increases.
Answer:
The answer is option A) Holding all else equal, in the labor market for health care employees the equilibrium wage increases, and the equilibrium quantity of labor decreases.
Explanation:
The increase in the number of citizens that need medical care in the united states as a result of the aging population is directly proportional to the supply of health workers.
Now that there is an increased demand for health care employees which implies more responsibility, their wage will increase.
The aging population also consists retired health workers thereby causing a corresponding decline in the equilibrium quantity of health care employees in the united states.
Answer:
"Unemployment rate"
Explanation:
odyssey ware
Answer:
EV = $-0.125
For one game, the outcome cannot be predicted, even though you are more likely to lose money.
For 100 games, you are expected to lose about $12.50
Explanation:
Expected value is the sum of the product of all possible outcomes by their payouts. In this case, there are only 2 possible outcomes. You either win by tossing 3 three heads with three coins or lose.
The probability of winning (P(w)) is:
Therefore, the probability of losing (P(l)) is:
The expected value (EV) for the game is:
For one game, the outcome cannot be predicted, even though you are more likely to lose money than win. As for 100 games, since the expected value is negative, you are expected to lose money (about $12.50).
The expected value of the game, where you win $6 if you get three heads on three coin tosses and lose $1 otherwise, is -$0.62. This indicates that you will lose, on average, about 62 cents per game, making it an unwise game to play if the aim is to win money.
The subject of this question is the expected value concept in mathematics, specifically in probability theory. To calculate the expected value of the game, you need to multiply the probability of winning by the amount won and subtract the product of the losing probability and the amount lost. In this case, you are given 6 to 1 odds against tossing three heads with three coins, meaning you win $6 if you succeed and you lose $1 if you fail.
The possible outcomes when tossing three coins are: 3 heads, 2 heads-1 tail, 1 head-2 tails, or 3 tails. Each of these outcomes has an equal probability of 1/8 or 0.125 because there are 8 possible outcomes. The only way to win the game is to get 3 heads, so the probability of winning is 0.125 and the probability of losing is 1 - 0.125 = 0.875.
To calculate the expected value, multiply the probability and the respective payoff (gain or loss). Therefore it is: Expected Value = (0.125) * ($6) - (0.875) * ($1) = -$0.62. This means that on average, you'll lose about 62 cents per game, so it would not be a good idea to play this game if the goal is to make money.
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Answer:
700 units
Explanation:
No of orders per year=annual demand/optimal order quantity
No of orders per year=12,000/600=20
Average orders per month=20/11=1.75
Average Inventory=1.75*400=700
Please note that 11 months are taken as 1 month is lead time therefore it is excluded for per month orders.