Answer:
= $93.64
Explanation:
Price = D1/ (r-g)
D1 = Dividend next year =D0(1+g)
D1 = 2(1.03) =2.06
g; growth rate = 3%
r= required return (Use CAPM to find it) as shown below;
CAPM ;r = risk free + beta(MRP)
beta = 40% *1 ( since market beta is equal to 1)
therefore, Beta = 0.4
CAPM; r = 2% + (0.4*8%) = 5.2%
Next, use the rate of return i.e 5.2% , to calculate the price of the stock;
Price = D1/ (r-g)
= 2.06 / (5.2% -3%)
Price = $93.64
Answer: Fiscal Policy
Explanation: Fiscal policy refers to the use of government spending and tax policies to influence economic conditions, including demand for goods and services, employment, inflation, and economic growth.
Fiscal policy is largely based on the ideas of British economist John Maynard Keynes (1883-1946), who argued that governments could stabilize the business cycle and regulate economic output by adjusting spending and tax policies. His theories were developed in response to the Great Depression, which defied classical economics' assumptions that economic swings were self-correcting. Keynes' ideas were highly influential and led to the New Deal in the U.S., which involved massive spending on public works projects and social welfare programs. The logic behind this approach is that when people pay lower taxes, they have more money to spend or invest, which fuels higher demand. That demand leads firms to hire more, decreasing unemployment, and to compete more fiercely for labor. In turn, this serves to raise wages and provide consumers with more income to spend and invest. It's a virtuous cycle.
Rather than lowering taxes, the government may seek economic expansion through increases in spending. By building more highways, for example, it could increase employment, pushing up demand and growth. Expansionary fiscal policy is usually characterized by deficit spending, when government expenditures exceed receipts from taxes and other sources. In practice, deficit spending tends to result from a combination of tax cuts and higher spending.
Answer:
Customer relationship management (CRM).
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, these employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving marketing communications, sales support, technical assistance and customer service so as to bring satisfaction to the customers.
Hence, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.
Answer:
C,)The reciprocity norm
Explanation:
From the question, we are informed about Sharon who is upset with her secretary. Though everyone in the office agreed not to give Christmas presents this year, Sharon's secretary gave her an expensive bottle of perfume. In this case, the best yet that identifies the source of Sharon's feelings is reciprocity norm.
Reciprocity norm can be regarded as rule of human interaction which stressed that action of a person needs to be reciprocated by another people. In simple term, reciprocity norm explain that when a particular person is been given a gift by another, the gift must be related by the person, this gift could take different number of forms. Reciprocity can be explained better as ways and how particular positive actions generate more positive actions, in the same way that negative actions generate or give room for more negative actions
Answer:
d. Equipment which is sold for an amount more than the book value in the end its life will increase income, and despite of increasing taxes, it will generate greater cash flows than if the same asset is sold at book value.
Explanation:
When an equipment is sold for a value which is more than book value then there is a profit which is called capital gain if asset is capital in nature.
On such amount of profit, the company has to pay mandatory taxes, the tax rate varies, but since the tax is paid on amount of profit only and not on the net consideration, even after taxes the cash flow will increase from such transaction.
Thus, following statement is correct
d. Equipment which is sold for an amount more than the book value in the end its life will increase income, and despite of increasing taxes, it will generate greater cash flows than if the same asset is sold at book value.