Answer:
The price of the stock today is $21.58
Explanation:
The dividend is growing by three different growth rates. Thus, the three stage growth model of DDM will be used to calculate the price of the share today. Under DDM approach, we discount the expected dividends by the required rate of return to estimate the fair value of the stock today. The terminal value is calculated when the dividend growth becomes constant forever. To calculate the price of the stock today, we use next period's dividend D1.
The price per share = D1 / (1+r) + D2 / (1+r)^2 + ... + [(Dn * (1+g) / r - g) / (1+r)^n]
Price per share = 2 * (1+0.06) / (1+0.12) + 2 * (1+0.06) * (1+0.04) / (1+0.12)^2 + [(2 * (1+0.06) * (1+0.04) * (1+0.02) / (0.12 - 0.02) / (1+0.12)^2]
Price of stock today = $21.578 rounded off to $21.58
Answer: <u><em>On nationalization</em></u> an expropriated investment will become a government-run entity.
Explanation: Nationalization refers to the procedure of transforming private properties into public properties by transporting them underneath the public title of a national or state government.
Therefore, on enforcing nationalization an confiscated private owned investment will thereby become a government owned and operated entity.
<u><em>The correct option is (c)</em></u>
Answer:
Fixed costs are the costs associated with your business's products or services that must be paid regardless of the volume you sell. ... Insurance - the liability insurance you hold on your business. Rent - the rent you pay on your office, factory, and storage space. Utilities - electricity, water, and other utilities.
Explanation:
Answer:
A) is maximizing her total utility from the given fixed budget.
Explanation:
The equal marginal principle refers to the principle in which the consumer would select that combination of goods which maximise its total utility. It could be selected by having marginal utility and its price
And for profit maximization, the marginal utility and the price is equivalent to both the goods.
i.e
30 = 30
Hence, the correct option is a.
Answer: risk
Explanation: 100% satisfaction guarantee is a statement that if a customer of a product (or service) is not satisfied with the item purchased, then the producer will offer a full refund back to the customer. In this case REI allows this option for a period of up to 1 year after the sale was made.
REI utilises this option in an effort to reduce costs attributed to risk. For customers, this is a powerful tool as they are allowed to try the product, while knowing that if they don't like it then they can return it for a full refund. For REI, it increases customer trust as it allows customers to believe that the product is worth the sales price. It also reduces risk as REI is able to test the product out to actual customers and get a feel for if they like it, and what can be improved if needed.
