Answer:
B) The public is wary of sharing confidential information after a recent spate of credit card scandals.
Explanation:
There are several advantages of click-only companies, especially that they are able to offer lower prices since they don't need to support the costs of brick-and-mortar stores.
But the whole idea of selling through the internet is based on the customers' trust on new technologies and they specially dislike when the new technologies fail, e.g. when a hacker discloses the accounts and passwords of millions of users.
Answer:
The intrinsic value per share is $33.92
Statement A is true about the constant growth model.
A. The constant growth model can be used if a stock's expected constant growth rate is less than its required return
Explanation:
The fair value or the intrinsic value per share of a stock whose dividends grow by a constant rate forever can be calculated using the constant growth model of dividend discount model approach. This model values a stock based on the present value of the expected future dividends from the stock. The fair value today under this model is calculated as follows,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend for the next period or D1
- r is the required rate of return
- g is the constant growth rate
P0 = 2.88 * (1+0.06) / (0.15 - 0.06)
P0 = $33.92
The constant growth model can only be used when the sustainable or constant growth rate is less than the required rate of return because a growth rate which is higher than the required rate of return will provide a negative share price and the prices for shares can never be negative. Thus statement A is correct.
Factors such as life expectancy, energy consumption, per capita GDP, literacy rates, and infant mortality rates are used to measure the development of a country.
Entrepreneurs "gets things started" and manages the means of production in a free enterprise system.Good and services for sale in the market place are called products.
Investment banking<span> and </span>commercial banking<span> are two divisions of the </span>banking
<span>industry that provide substantially </span>different<span> services. </span>Investment banks<span> expedite the purchase and sales of bonds, stocks and other </span>investments<span> and aid companies in making initial public offerings</span>