Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $30 per share dividend. The dividend will not subsequently change. Given a required return of 18%, what should the stock sell for today?

the stock sell for today is $1.16

Explanation:

The calculation of the stock sell for today is as follows;

Value after year 31 is

= (D31 ÷ Required return)

= $30 ÷ 0.18

= $166.666667

Now the current value is  

= Future dividend and value × Present value of discounting factor(rate%,time period)

= $30 ÷ 1.18^31 + $166.666667 ÷ 1.18^31

= $1.16

Hence, the stock sell for today is $1.16

We simply applied the above formula so that the correct value could come

And, the same is to be considered

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'