The correct answer to this is B) a designer handbag. This is not a commodity. A commodity is anything that is considered a raw material.
Answer:
Explanation:
Owning a franchise has the following main advantages:
1) A franchise owner gets valuable help throughout the lifespan of the business. Upon acquiring a franchise, the business owner receives a continuous training and assistance necessary for marketing and management.
2) Owning a franchise comes with a low rate of failure. A franchise comes with an established business concept that is already successful in the market which assures the owner of better chances of success compared to starting up an independent business.
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Answer:
Price of stock = $78.143
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 11.0% as follows
Price of stock =3.15 × 1.11^(-1) +3.55× 1.11^(-2) +4.05 1.11^(3) +95× 1.11^(-3)
=78.143
Price of stock = $78.143
