Answer:
d) $18.62
Explanation:
Hi, first, let´s introduce the formula to find the price of this stock.
Where:
Do = Last Dividend
g = growth rate
r = cost of equity
We have almost everything, all we need to do is find "r". That is:
Where:
rf = risk Free rate
MRP = market risk premium.
So, we find r first as follows:
therefore, r = 9.75%. Now we are ready to find the price of the stock.
The price of this stock is $18.62
Best of luck.
Answer:
b. the company uses its donations as a public relations move rather than corporate strategy
Explanation:
The company above is focused on "children's clothing." This means that, if its approach is not tied to its business objectives, then it is using its donations as <em>a public relations move.</em> This is also known as "Philanthropy." Such kind of strategy allows the company to become more visible through a cause-related marketing style.
The motive in such kind of strategy is doubtful. This is because the programs being targeted are not well-tied to a particular business strategy of the company. It is aimed at enhancing the company's morale. This will allow the company to have a favorable image which may result to a good impact on sales.
So, this explains the answer.
Answer:
The answer is 'Buy a Stock Index Future'
Explanation:
To take best advantage of this situation, Mr Smith should go long(buy) on this stock.
Stock Index Future js a method of derivates. Futures, like forward contract is a forward commitment which obligates the buyer to purchase an asset or the seller to sell an asset and have a predetermined future date and price. Future is used to hedge against worse future situations.
Answer:
Always higher than manufacturing cost per unit for variable costing.
Explanation:
Absorption costing continuously contains fixed overheads similarly while computing the manufacturing cost.
Conversely, under variable costing only adjustable overheads were included.
Thus, the manufacturing cost under absorption costing method is always higher than variable costing method
Therefore, per unit cost will always be higher under absorption costing than in variable costing.
So, option C is the correct option
Answer:
The answer is A.) Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.
Explanation:
