It is an example of consumer protection against incomplete
information disclosure where in this focuses on not being able to provide an
adequate or accurate information to the consumers in which is considered to be
unethical as this could harm the consumers who brought the products without
having to know its full information.
Answer:
a $7.95
b. $2.21
c $16.36
d, $13.01
Explanation:
according to the constant dividend growth model
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 2/3 = 1/3
1/3 x 3.6 = $1.2
r = cost of equity
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
5% + 1.7(15 - 5) = 22%
g = growth rate
g = plowback rate x ROE
2/3 X 9 = 6%
1. [1.2 x 1.06] / (0.22 - 0.06) = 1.272/ 0.16 = $7.95
2.
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm
price to earning ratio = market value per share / earnings
$7.95 / $3.6 = $2.21
c. present value of growth opportunities = earnings / cost of equity
3.6 / 0.22 = $16.36
d.
price = [d0 (1+g)] / (r - g)
d0 = recently paid dividend
Dividend = payout ratio x earnings
payout ratio = 1 - plowback rate
1 - 1/3 = 2/3
2/3 x 3.6 = $2.40
r = cost of equity = 22%
g = plowback rate x ROE
1/3 X 9 = 3%
[2.4 x 1.03] / (0.22 - 0.03) = 2.472/ 0.19 = $13.01
Answer: Threat of substitutes products
Explanation: Substitute goods refers to those goods which can be easily used in place of one another. In case of these goods, when the price of one rises the demand for other rises.
In the given case, the firms in pharmaceutical industries cannot increase the price of their products as there are other easy alternatives available.
Hence the correct answer is threat of substitutes.
Thats tricky because its free money so you can get it even if you are financially stable. as long as you fill out the fafsa form and your info is right you can see how much you eligible for
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Answer: The correct answer is "d- An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada.".
Explanation: "An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada." is an example of licensing because in this contract the owner of a registered trademark (Licensor) grants authorization to a company (Licensee) to produce and sell products with that brand in a specific territory and for a specific period of time.