Merriweather's has a policy of increasing its annual dividend by 1.75 percent each year. How much will one share be worth five years from now if the required rate of return is 15 percent and the next dividend will be $3.40

P5 = $27.98563259 rounded off to $27.99

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

To calculate the price today (P0) we use D1 or dividend expected for the next period.Similarly, to calculate the price 5 years from now or P5, we will use D6. We will calculate D6 first and use it in the above formula in place of the numerator. We are given D1 as 3.4

D6 = 3.4 * (1+0.0175)^5

D6 = $3.708096319

The price of the stock 5 years from now will be,

P5 = 3.708096319 / (0.15 - 0.0175)

P5 = $27.98563259 rounded off to $27.99

d, rjskdndjsndbdnsjdbxbc

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.