According to the given scenario, Miranda has discovered that her new business will definitely be successful. Thus, option first is correct.
<h3>What is Business?</h3>
A business is an organization or enterprising body that engages in commercial, industrial, or professional activities. Businesses can be nonprofit organizations or for-profit enterprises.
Among the various business structures are partnerships, corporations, limited liability companies, and sole proprietorship.
According to the above situation, Miranda has learned that the future of her new company is bright as he has taken certain important steps in order to grow her business.
Therefore, it can be concluded that first is correct.
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Answer:
$8.78
Explanation:
National advertising made dividend payment of $0.75 per share
The dividend is expected to grow at a constant rate of 6.50%
= 6.50/100
= 0.065
The company beta is 1.85
The required return on the market is 10.50%
The risk free rate is 4.50%
The first step is to calculate the rate of return using the CAMP model
R = Risk free rate+beta(market return-risk free rate)
= 4.50%+1.85(10.50%-4.50%)
= 4.50%+1.85×6%
= 4.50%+11.1
= 15.6
Required rate of return= 15.6
Therefore the current stock price can be calculated as follows
Po= Do(1+g)/(r-g)
Where Do= 0.75, g= 0.065, r= 15.6
Po= 0.75(1+0.065)/(0.156-0.065)
Po= 0.75(1.065)/0.091
Po= 0.7987/0.091
Po= $8.78
Hence the company current stock price is $8.78
Answer:
The correct answer to the following question is Extreme value stores .
Explanation:
Extreme value stores are those type of stores which are also know as merchandise discount store, which are easily found in the low income rural and urban areas. These type of stores are usually small discount stores, who have very limited merchandise assortments and they offer those products at a very low price. The given examples of Aldi, Lidl, Dollar general and Family Dollar are all examples of Extreme value stores.
