Answer:
Company ABC has two primary segments.
Explanation:
Market segmentation involves splitting up an organization's clients into groups by putting people with similar characteristics in one group.
Similar characteristics could be age,sex,level of income and even level of literacy.
By segmenting markets,an organization is able to identify the customers who contribute most to its bottom line and decide on how to deal with them so as to keep them satisfied and ensured their repeat business
Answer: Personal comparison
Explanation:
When it comes to the Control Process, entities are allowed to use several comparison methods when comparing task results with objectives.
These include:
- the Historical method where current performance is compared to past performance
- the Relative comparison method where the organization's performance is compared against a benchmark of other organizations in the industry.
- Engineering comparison where schedules are used to ensure that activities finish on time.
Personal comparison is not an acceptable method.
Most youths don’t want to work, and some that do find it hard getting a job because no one wants to give them a chance. Most places ask for experience in that field but how can I have experience if no one ever gave me a try also the older folks don’t want to give up their seat at the table for anyone.
Answer: $75
Explanation:
Using the Gordon Growth Model:
Price of stock = Next year dividend / (Required return - growth rate)
Growth rate is 0% as dividend does not change per year.
Price of stock = 6 / 8%
= $75
Answer and Explanation:
The formula to compute the required rate of return using the CAPM and constant growth model is as follows
Under CAPM
The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
Constant growth model = Dividend ÷ Price + Growth rate
For Estee lauder,
Under CAPM = 4% + 0.74 × (10% - 4%)
= 4% + 0.74 × 6%
= 4% + 4.44%
= 8.44%
Under the Constant growth model
= $1.70 ÷ $50 + 16.50%
= 19.90%
For Kimco realty,
Under CAPM = 4% + 1.51 × (10% - 4%)
= 4% + 1.51 × 6%
= 4% + 9.06%
= 13.06%
Under the Constant growth model
= $1.68 ÷ $82 + 11%
= 13.05%
For Estee lauder,
Under CAPM = 4% + 1.02× (10% - 4%)
= 4% + 1.02 × 6%
= 4% + 6.12%
= 10.12%
Under the Constant growth model
= $0.60 ÷ $10 + 13%
= 19.00%
