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Holy shit, someone help with this simple algebra problem.

chewyxrage

New member
It's a problem I derived from a finance formula, I cannot for the life of me get the solution. I know it's simple, my mind is blank.


18 = KRF + (14-KRF)(1.4)


the solution is 4.
 
chewyxrage said:
It's a problem I derived from a finance formula, I cannot for the life of me get the solution. I know it's simple, my mind is blank.


18 = KRF + (14-KRF)(1.4)


the solution is 4.

distribute the 1.4

18 = KRF + 14x1.4 - 1.4 KRF

combine like terms

18 = -.4 KRF + 19.6

-1.6 = -.4 KRF
KRF = 4
 
casualbb said:
distribute the 1.4

18 = KRF + 14x1.4 - 1.4 KRF

combine like terms

18 = -.4 KRF + 19.6

-1.6 = -.4 KRF
KRF = 4


it couldnt be that simple could it? He'd have to be a complete....lol jk
 
Here's one for you BB:

Brothabill Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Brothabill has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Brothabill's stock.


err bran you can't answer.
 
chewyxrage said:
Here's one for you BB:

Brothabill Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Brothabill has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Brothabill's stock.


err bran you can't answer.


lol, I left the classroom too far gone, the only calculations I make are aortic valve areas and pressure equations of the cardiac system. If I started to think finance, my brain would melt, plus, I dont know the lingo of beta, which means something different to me that it would to a financial person. Although I did have a series 7 and 63 license
 
chewyxrage said:
Here's one for you BB:

Brothabill Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Brothabill has a beta of 1.3. If the market is returning 11% and the risk-free rate is 4%, calculate the value of Brothabill's stock.


err bran you can't answer.
ok I won't :)

hint for BB: Think growing perpetuity
 
bran987 said:
ok I won't :)

hint for BB: Think growing perpetuity


think Chaga's disease, lol, different fields of expertise, simple algebra is one thing but mixing in different jargon lol, Im not going to even go near the google search to look up a word
 
LOL, I do this sorta thing more often than I'd like, too. :D

It usually means you need to take a 5-10 minute break from HW... I try to do this every 1-2 hours, as it helps me stay focused.

This thread also reminds me I need to start studying for the GRE gen math section, lol. This is exactly why people can easily screw it up.



:cow:
 
samoth said:
LOL, I do this sorta thing more often than I'd like, too. :D

It usually means you need to take a 5-10 minute break from HW... I try to do this every 1-2 hours, as it helps me stay focused.

This thread also reminds me I need to start studying for the GRE gen math section, lol. This is exactly why people can easily screw it up.



:cow:


Exactly. After spending a few hours with my face a foot away from a notebook scribbling problems and I get stuck on something like that...a bit annoying...
 
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