// Numbas version: exam_results_page_options {"name": "current value of a share with constant dividend", "extensions": [], "custom_part_types": [], "resources": [], "navigation": {"allowregen": true, "showfrontpage": false, "preventleave": false}, "question_groups": [{"pickingStrategy": "all-ordered", "questions": [{"functions": {}, "preamble": {"css": "", "js": ""}, "variablesTest": {"condition": "", "maxRuns": 100}, "advice": "

We are asked to find the current value of a share with a constant dividend, therefore we will use the formula

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$\\displaystyle P_0=\\frac{D_0}{r_s}$

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In our situation we have,

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$D_0=\\var{D}$,

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$r_s=\\var{rr}\\%=\\var{rrdec}$,

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and therefore we have

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$\\displaystyle P_0=\\frac{\\var{D}}{\\var{rrdec}}$

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which upon calculation gives

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\\begin{align}P_0&=\\\\var{Prounded}\\quad \\text{(to the nearest cent)}\\end{align}$", "statement": " If you are unsure of how to do a question, click on Reveal answers to see the full working. Then, once you understand how to do the question, click on Try another question like this one to start again. Do each question repeatedly to ensure you have mastered it. ", "parts": [{"marks": 0, "customName": "", "useCustomName": false, "showFeedbackIcon": true, "type": "gapfill", "extendBaseMarkingAlgorithm": true, "prompt": " What is the current value of a single share if the required rate of return is$\\var{rr}\\%$per annum, and the share constantly pays$\\$\\var{D}$ each year?

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$\\$\$ [[0]] (to the nearest cent)

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