Alright so I'm pretty sure I'm fucked. I have a Finance final coming up soon and I had the worst professor you can possibly imagine (the guy couldn't teach a fish to swim). That being said I'm stuck on question 4, I'm not even sure it can be answered.
Anyone know how to solve this on paper or through a TI BAII Plus financial Calculator?
yeah
just a sec let me figure it out for you
fuckin idiot
OP, hope you realize you are studying how to make old, rich Jewish guys even richer.
Let that sink in for a second.
lol
Graduated 2 years ago don't remember how to solve any of that
Honestly I don't give a shit about any of this. I'm gonna forget everything I learned in this class as soon as it's over. But unfortunately its required for my major so it is what it is.
Whats your major?
lesbian dance theory
are you, dare I say, an asmongold viewer?
Yeah I'm in sex therapy for homosexuals with a minor in complaining about white people. College has changed.
>today morning
Nice grammar.
I don't know how to do this but use the RRR formula and just plug in the numbers
Professor Pajeet
Right on the nose. The guy is middle eastern as fuck. Part of the reason he's such a bad professor is I can't understand a thing he says
none of the options are correct
the discount rate should be close to 15.56%
i applied the Gordon constant growth model and then discounted back 2 years to $12. The constant growth rate is 0.
Can you post a pic of your notes?
dude...no
you're supposed to divide $2.5 (the dividend expected at the end of year 2) by the discount rate - g
g is the constant growth of the dividend. in this case it's zero
they you're supposed to divide that by (1 + Discount rate) ^2
because you're discounting back 2 years to Po = $12
its such a retarded question. fuck i hate the time value of money and Gordon and go fuck himself
6 is C
Markowitz faggotuccini portfolio theory.
mean variance efficient portfolio
kek
according to my answer sheet its D
this guys an idiot.
Here you go OP, next time save the question for an actual science/math help forum. The retards on this boards are 100% NEETs and don't understand finance at all, just how to trade crypto lol
>D1 = 0
>D2 = 2*1.25 = 2.5
use dividend discount model formula
constant dividends:
>P0 = D1/R
>D1 - Dividend at t =1
>R - Required rate
>P1 = D2/R = 2.5/R
>P0 = (2.5/R)/(1+R)^1
>12 = (2.5/R)/(1+R)^1
>R = 0.1770 = 17.70%
you're welcome
sorry it's D
C would be describing modern portfolio theory
harry markowitz
>CUNY
What school?
Baruch
Beat me to it, I left my TI at home. Veeky Forumsfags like this homie right here shows me that there's hope for Veeky Forums
retard
the discount factor is raised to 2 not 1
dumbass read the given
SECOND YEAR!
Holy fuck thank you! I honestly thought this was the board for this kind of stuff but yeah, its just people bragging about cryptos and "going to the moon".
Do you do tutoring?
mad love homie
lmao bro do me a favor and just stick to ur day job
nah i don't tutor lol. unironically i am one of those dumbasses bragging about going to the moon. why tutor when i'm cashing like 1k a day trading meme coins? ;)
i thought companies pay whatever percentage of dividend they want
I guess there's no point, but It would nice if I could find someone competent here who'd teach me this stuff.