Answer:
correct option is a. 19.63%
Explanation:
given data
dividend = $3.50 per share
constant rate = 10% per year
common stock = $40 per share
flotation costs = $4 per share
solution
we know formula that is
cost of retained earnings = 
+ Growth rate
we will ignored Flotation costs in this case
so it will be = 
+ 0.1
= 19.63 %
so correct option is a. 19.63%
The answer is: [A]: "vertical scope" .
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Answer:
The answer is $41.21
Explanation:
Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%
Cost of Equity = D1/Current Stock Price + Growth Rate
10.6% = $3/$40 +g
g = 3.1%
Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21
Answer:
decline and product diversity in the market increases.
Explanation:
Competitive price searcher markets are those that have little barriers of entry for new firms.
Also the new forms are able to engage in transactions that are profitable. That is they easily take a market share.
In this scenario it will result in greater diversity of products as many firms can now produce goods that will be profitable in the market.
Also it will lead to a decrease in profit of existing firms as the new firm gets some of the market share
