Suppose a piece of plant equipment that PepsiCo put into service on January 1, 2014 at a total cost of $300,000 with an expected

Answer:

P14 = $55.69545045394 rounded to $55.70

Explanation:

The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,

P0 = D1 / (r - g)

Where,

• D1 represents the expected dividend for Year 1 or the following year

• g denotes the constant growth rate for dividends

• r signifies the discount rate or the required rate of return

To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362 rounded to $1.67

Now applying the DDM formula for the price,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394 rounded to $55.70

Response:

The yearly average return stands at 9.6 %

Clarification:

Calculating the average return

Assuming the price per share is 100

                                                       Initial    Growth             Final

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  2,000             10 %                2,200

Total amounts                             10,000                                     10,960

To find the average return, take the increase in value over the base, divided by the base

10,960 -  10,000  =  960/ 10000  = 9.6 % average return

Response:

The property will go to the nearest direct heir, which is his sister. This is because property is typically divided among siblings. Therefore, since Smith's sister qualifies as one of the siblings, she is entitled to inherit the property.

Clarification:

d. high negative affect. Negative affectivity refers to a widespread personality trait characterized by a consistent tendency to feel negative emotions. Individuals with high levels of negative affectivity are notably resistant to experiencing negative moods over time and regardless of circumstances. In Jane's situation, despite beginning her new role, she is overwhelmed by negative feelings tied to the campaign.

Answer:

4.88%

Explanation:

To determine the interest rate, use the formula:

r=(FV/PV)^(1/n)-1, where

r=interest rate

FV= future value= 423.17*(12*5)=423.17*60=$25,390.2

PV= initial amount= $20,000

n= time periods= 5

Substituting the values into the equation yields:

r=(25,390.2/20,000)^(1/5)-1

r=1.048-1

r=0.0488→4.88%

This indicates that the bank's annual interest rate is 4.88%.