McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $4.90 per share with the first dividend exactly 10 years from today. If the required return is 3.84 percent, what is the current price of the stock?

c. (3,2,6) is the answer.

irrational, cannot

answer: solve 5\cdot 2^x=2405⋅2  

x

=2405, dot, 2, start superscript, x, end superscript, equals, 240.

solution

to solve for xxx, we must first isolate the exponential part. to do this, divide both sides by 555 as shown below. we do not multiply the 555 and the 222 as this goes against the order of operations!

\begin{aligned} 5\cdot 2^x& =240 2^x& =48 \\ \end{aligned}  

5⋅2  

x

2  

x

​    

=240

=48

​

step-by-step explanation: