
Stock and Dividends
Hi all,
I have two eqns which are related to stock and dividends( .. i hope).
5.5x + 2.5y = theta
67.00x + 28y = 200 000
I derived the above two eqns from this:
Stock A is @ 67.00
Stock B is @ 28.00
Stock A pays 5.5 dollars per unit of stock annually
Stock B pays 2.5 dollars per unit of stock annually.
(ie. if i buy 1 x 67.00 and 0 x 28.00, that year i'll get $5.50)
My question is how to derive the set of {x,y} that would yield max theta possible?
I tried substitution algrebta. However, i don't know how to prove the theta obtained by that set of {x,y} is the max theta possible.
May i know what i could do to prove and find the max theta?
Million thanks,
Gary