Michelak's Maritime Industries has relatively stable earnings and pays an annual dividend of $3.00 per share
This dividend has remained constant over the past few years and is expected to remain constant for some time to come. If you want to earn 11% on an investment in the common stock of Michelak's, how much should you pay to purchase each share of stock?
A) $12.50
B) $18.88
C) $20.83
D) $27.27
Answer: D
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a. true b. false
Determine the average time that a snowplow is out of service
A crew of mechanics at the Department of Transportation garage make minor repairs to snowplows during the winter. The snowplows break down at an average rate of 4 vehicles per day and breakdowns are distributed according to the Poisson distribution. The mechanic can service an average of 7 vehicles per day with a repair time distribution that approximates a negative exponential distribution. Assume an 8 hour day. A) .33 hours B) 20 minutes C) 2.64 hours D) .19 days