Question

The cash flow per share for a boot company was $1.19 in 1999 and $1.57 in 2007. Write a linear equation that gives the cash flow per share in terms of the year. Let t = 9 represent 1999.

Answer 1

m = ($1.57 - $1.19)/(9 - 1)

= $0.38/8

= $0.0475

$1.57 = $0.0475(9) + b

$1.57 = $0.4275 + b

b = $1.1425

y = $0.0475x + $1.1425