Answer:
Option "B" is the correct answer to the following question.
Explanation:
Price-setters is a community or individual, who set a fair price for a particular commodity or product, these types of Individual or community has a higher quality of goods or product that gave him the ability to set his prices.
Other firms are called price taker who depend on the market price
Price-setters firms use a pricing approach.
Answer:
Noun Phrase - My cat, The frightened mouse, the angry cat
Verb Phrase - chased the mouse, hid under the rug, stalked off
Explanation:
A noun phrase, or nominal, is a phrase that has a noun as its head or performs the same grammatical function as a noun. Noun phrases are very common cross-linguistically, and they may be the most frequently occurring phrase type.
a verb phrase (VP) is a syntactic unit composed of at least one verb and its dependents—objects, complements and other modifiers—but not always including the subject.
Answer:
BenchMark, Inc.
The current share price for the stock is:
$43.13
Explanation:
Dividend per share = $3.45
Growth rate = 5%
Investors' required rate of return = 13%
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)
= $3.45/(0.13 - 0.05)
= $43.13
b) To determine BenchMark, Inc.'s current share price divide the dividend per share by the required rate of return after subtracting the growth rate from the required rate of return.
Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
A
A lot of Money in that business
