Answer:
10.85 percent
Explanation:
Return on equity = 0.045 × 1.60 ×(1 + 0.60) = 0.1152
Sustainable growth = [0.1152 × (1 - 0.15)]/{1 - [.1152 × (1 - 0.15)]} = 10.85 percent
The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.
The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.
B.only new information affects stock prices.
Answer:
<u>Demographic</u>
Explanation:
Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customer . One product line caters to the needs pf affluent , middle-aged men , and the other line targets younger , up -and - coming professionals . Harry's most likely segments the consumer market is based on<em><u> demographic variables.</u></em>
<em>The statistical data of the population of the people is known as demographics . Demographics contain age , gender , income etc.</em>
Demographic is important for the company as it help the company to tell about how to market and how to develop the brand. It helps in telling the behavior of the customer towards the product means whether the people liking the product or not liking the product . It is consider as the best way to reach to the people and know about their preference for the product.
Answer:
Longly will receive $1,817.43 from selling the bond.
Explanation:
As the coupon rate is 8%; we have annual coupon payment = 2,000 x 8% = $160.
The price of the bond Longly will receive is equal to the present value of 20 annual coupon payment plus the present value of $2,000 face value repayment in 20 years time; with the two streams of cash flow discounting at the market rate at the date of issuing 9%; which is calculated as:
[ ( 160/9%) x [ 1 - 1.09^(-20) ] ] + ( 2,000 / 1.09^20 ) = $1,817.43.
So, the answer is $1,817.43.
Answer:
The correct answer is the option C: Relational switching cost.
Explanation:
To begin with, the concept known as <em>''switching cost'' </em>in the field of business, basically refers to all the costs involved in the procedure of switching from a supplier to a new one. Moreover, this term also involves many different types, such as financial switching costs, procedural switching costs and relational switching costs.
To continue, the third one, <em>the relational switching cost</em> refers to the situation where a company has changed its supplier and a big loss of identification and emotional bonds changed as well with it. Furthermore, when relational switching costs take place the personal relationships between the people involved in the transactions of the company are lost and that generates an impact in the new relationships with the new supplier.
