Answer:
$9.63
Explanation:
Data provided in the question:
Year Annual dividend paid
1 $1.20
2 $1.12
3 $1.12
4 $14.20
Now,
Year Annual dividend paid Present value factor Present value
1 $1.20 0.84246 1.011
2 $1.12 0.84246 0.7949
3 $1.12 0.59793 0.6696
4 $14.20 0.50373 7.1529
===============================================================
Worth of stock = 1.011 + 0.7949 + 0.6696 + 7.1529
= $9.6284 ≈ $9.63
Note:
Present value factor = [ 1 ÷ (1 + 0.187)ⁿ]
here,
n is the year
B. Serena should focus on a certain amount and track her spending
Answer:
Ben Lingo's Net Worth Statement:
Assets:
Cash $82
Savings $150
Car $2,000
Inventory $1,200
Total Assets = $3,432
Liabilities:
Car loan $1,500
Credit Union loan $80
Total Liabilities = $1,580
Net Worth = Total Assets - Total Liabilities
= $3,432 - $1,580
= $1,852
Answer:
Macaroni and cheese is an inferior good.
Explanation:
From the information given in the question, we can assume that macaroni and cheese are considered as an inferior good for this consumer because there is an inverse relationship between the income level of this consumer and the quantity demanded for macaroni and cheese.
If there is 10% increase in the income of an individual then as a result quantity demanded of macaroni and cheese decreases by 15% and the price of this good remains constant. This shows that macaroni and cheese is an inferior good.
