Your company is estimated to make dividends payments of $2.2 next year, $3.9 the year after, and $4.8 in the year after that. The dividends will then grow at a constant rate of 2% per year. If the discount rate is 9% then what is the current stock price?

$63.01

Explanation:

The share price today is the present value of expected future cash flows which in this case are the expected future dividends and the terminal value of dividends beyond the 3rd year.

Year 1 dividend =$2.2  

Year 2 dividend =$3.9

Year 3 dividend =$4.8

Terminal value=Year 3 dividend*(1+constant growth rate)/(required rate of return-constant growth rate)

constant growth rate=2%

the required rate of return=9%

Terminal value=$4.80*(1+2%)/(9%-2%)

Terminal value=$69.94

Present value of a future cash flow=cash flow/(1+required rate of return)^n

n is 1 for year 1 dividend, 2 for year 2 dividend , 3 for year 3 dividend,  and terminal value(terminal value is stated in year 3 terms)

stock price=$2.2/(1+9%)^1+$3.9/(1+9%)^2+$4.8/(1+9%)^3+$69.94/(1+9%)^3

stock price=$63.01  

do u ahve any choices

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.'