SOLUTION: Dividends paid on utilities stocks vary inversely with the prime interest rate. When the prime interest rate was 16%, dividends on a utility stock were $3.42 per share. If the pri
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Question 1046345: Dividends paid on utilities stocks vary inversely with the prime interest rate. When the prime interest rate was 16%, dividends on a utility stock were $3.42 per share. If the prime interest rate dropped to 11%, what dividends would be paid?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Let be the constant of proportionality
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$4.97 would be paid
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check:
error due to rounding off
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