Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be $5.00 per share. The company plows back 50% of its earnings and if the Chief Financial Officer (CFO) estimates that the company's return on equity (ROE) is 16%. Assuming the plowback ratio and the ROE are expected to remain constant forever: If you believe that the company's required rate of return is 10%, what is your estimate of the price of the company's stock?

$250

Step-by-step explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

Sustainable growth rate is the rate of growth a company can afford in the long term

sustainable growth rate = plowback rate x ROE

b = plowback rate. It is the portion of earnings that is not paid out as dividends

g = 0.50 x 0.16 = 0.08 = 8%

5 / (10% - 8%)

5 / 2%

5 / 0.02 = $250

it's 100

step-by-step explanation:

22, 28, 34, 40, 46

b)   f(n) = 6n + 16

  n = what is the number of the row ( 22 would be row 1) so if we replaced n with 1, we would get 22

c)   the  14th  row will have 100 seats

(1)   (2)   (3)   (4)   (5)   (6)   (7)   (8)   (9)   (10) (11) (12) (13) (14)

22 | 28 | 34 | 40 | 46 | 52 | 58 | 64 | 70 | 76 | 82 | 88 | 94 | 100

read more on -

third choice down

step-by-step explanation:

the first inequality is based on the number of adults and campers, and the second inequality is based on the cost of feeding both the adult and the camper.

we know that there is room for 525 people max.   it's ok to have less than 525, but it's not ok to have more than 525, so the inequality is less than or equal to.   the number combination of adults (x) and campers (y) cannot exceed this 525 max.   therefore:

x + y ≤ 525

now we talk about cost.   it costs $9 to feed one adult, so depending upon the number of adults you have (x) depends upon how much it will cost to feed that number of adults.   same with the campers, who cost $5 to feed.   the adults can be represented by 9x and the campers can be represented by 5y.   since the budget cannot exceed 1,200, the second inequality is:

9x + 5y ≤ 1200