Answer:
Gravity models are used to find location that minimizes the cost of transporting raw material from the supplier and finished goods to the markets served. This model also assumes that the transportation cost grows linearly with the quantity shipped.
Explanation:
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Answer: a) Information that is relevant to the case.
Explanation:
A legitimate reason for this examination of document is because it's the document that's involved or relevant to the case.
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Answer:
r = 11.55%
Explanation:
Given that,
Annual dividend paid last week, D1 = $2.50
Dividend growth rate, g = 8%
current price of common stock = $76
Stock price = D1 ÷ (r - g)
$76 = [$2.50 × (1 + 8%)] ÷ (r - 8%)
$76 = 2.7 ÷ (r - 8%)
(r - 8%) = 0.0355
r = 0.0355 + 0.08
= 0.1155 × 100
= 11.55%
Therefore,
Return, r = 11.55%