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Someone who is retiring has more experience on what to invest in than someone who is still getting used to knowing what to invest in
Answer:
It may turn off it's current customer base and cause them to purchase a competitors ice cream.
Explanation:
Market penetration strategy is the process of selling current products to an already existing market so as to obtain a higher market share by taking the market shares from the other competing companies.
Market penetration strategy uses low prices to generate demand for a product and increase market share. Bud's bucket ice cream decides to penetrate the gourmet market by offering its same ice cream at high prices instead of reducing the price, this might lead to a reduction in their current customer base.
Answer:
Bonds
Explanation:
Bonds are financial instruments that are used to obtain funding from the bond holders. It is a debt security that is issued by a government or corporation to investors.
When investors buy bonds the funds are used by governments for its operations and various projects. Interest is paid on the bonds.
Bonds can be municipal bonds or corporate bonds.
Unlike shares bonds does not grant the holder an equity or ownership stake in the company, rather it grants a creditor stake.
Answer:
The investors should expect to 9.26% of Return.
Explanation:
The Dividend Discount Model for Constant Growth should be used here.
DDM = Current Price = Dividend of Year 1 / (Required Return - Growth Rate)
Dividend of Year 1 = 1.64 (1.03) = 1.6892.
Re-arrange the above model for Required Return and put values:
Required Return = (1.6892 / 27) + .03 = .0926 OR 9.26%.
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