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Assignment on Dividend Calculation

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Added on  2021-05-31

Assignment on Dividend Calculation

   Added on 2021-05-31

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Dividend Calculation:Dividend is the amount (in dollars) given to the each share holder by the company based on their profit. Here we hadn’t estimated the accumulated profit of the company. Yet we have been provided with the formula for estimating the dividend for each year. Through this we could calculate the dividend given in each year which is described in the below table as followsTable 1: Dividend provided by each company based on their profit is calculated by the formulaCOMPANYFORMULAYEAR(n=1)YEAR(n=2)YEAR(n=3)YEAR(n=4)Wind expressan=5000×2n3n+1$1111.11$740.74$493.82$392.21Solar Innovationsan=42n×31n$16$85.33$455.11$2427.26Gaseous Exchange$1000$2000$3000In order to calculate the best dividend company and provide the details to the CEO of Mindunia Australia, the yearly dividend of each company should be estimated. This could be estimated either with the help of arithmetic or geometric sequence. But the use of geometric sequence playsa vital role. Let’s consider the example, if we invest $100 for the company and if we have $50 loss then the net amount will be $50. If we have 50% gain in the next year then we have the net amount to be $75. This is a simple estimation which couldn’t be derived by the arithmetic sequence which could be a break even. But we have actual loss with the initial pay.Wind express: Yearly dividend (tn):We have series in the form 1111.11, 740.74, 493.82, 392.21The common ratio here is 1.5The geometric sequence could be expresses as a, ar, ar2, ar3, ..............The yearly dividend of this company tn = 1111.11, 1111.11 × (1.5)-1, 1111.11 × (1.5)-2, 1111.11 ×(1.5)-3Solar Innovations: Yearly dividend (tn):We have series in the form 16, 85.33, 455.11, 2427.26The common ratio here is 5.33The geometric sequence could be expresses as a, ar, ar2, ar3, ..............
Assignment on Dividend Calculation_1

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