The Whirlwind Co. just paid an annual dividend of $3 a share. The firm expects to pay dividends forever and to increase the dividend by 5 percent annually. What is the current value of this stock if the required return is 9 percent?

The current value of the stock is $78.75

Explanation:

The constant growth model of DDM will be used to calculate the price of the stock as its dividends are expected to grow at a constant rate forever. The formula for price under this model is,

P0 = D1 / r - g

Where,

P0 = 3 * (1+0.05) /  (0.09 - 0.05)

P0 = $78.75

Stock price is $78.75

Explanation:

The formula for computing the stock price is given below:

stock price=Do*(1+g)/r-g

Do is the dividend that has just been paid at $3

g is the dividend growth rate at 5%

rate of return r is the expected return on the share at 9%

stock price=$3*(1+5%)/(9%-5%)

                 =$78.75

A rational investor would only pay $78.75  for the stock of the company considering the fact that the dividend grows at 5% per year and the return on stock is 9%

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this