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3 years ago

In the circular flow model businesses demand products and supply resources.

1 answer:

3 0

<span>This is false. In fact, in the circular flow model, it is the exact opposite for firms. These businesses supply products to the people buying them and demand resources (i.e., land, labor, capital) as a way of creating these products for the consumers.</span>

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year was $2.78 and is expected to be $3 at the end of this year, the current stock price is $60, and the growth rate for dividen

TEA [102]

Answer:

The expected return is 13%.

Explanation:

Note: Before answering the question, the full question is first stated as follows:

A firm's stock cash dividend per share for last year was $2.78 and is expected to be $3 at the end of this year, the current stock price is $60, and the growth rate for dividends is 8 percent. Using the Gordon approach, what is the expected return?

The answer to the explanation of the answer is now as follows:

Gordon’s theory which is also known as ‘Bird-in-the-hand’ theory states that the importing factor to consider in determining the value of a firm are the current dividends.

Therefore, the Gordon growth model (GGM) formula which assumes that there will a stable dividend growth rate year after year forever is employed for this question as follows:

P = d1 / (r – g) ……………………………………… (1)

Where;

P = current stock price = $60

d1 = next dividend = $3

r = expected return = ?

g = growth rate of dividend = 8%, or 0.08

Substituting the values into equation (1) and solve for r, we have:

60 = 3 / (r - 0.08)

60(r - 0.08) = 3

60r - 4.80 = 3

60r = 3 + 4.80

r = 7.80 / 60

r = 0.13, or 13%

Therefore, the expected return is 13%.

7 0

3 years ago

The market demand for singing dolls is initially made up of 50 buyers. suppose there is a decrease in the number of buyers by 10

Setler79 [48]

I guess the correct answer is the quantity supplied to decrease.

The market demand for singing dolls is initially made up of 50 buyers. Suppose there is a decrease in the number of buyers by 10. Holding everything else constant, one would expect the quantity supplied to decrease.

8 0

4 years ago

A marketing research supplier that quotes an unrealistically low price for marketing research, only to raise it with add-ons, et

liberstina [14]

Answer:

A marketing research supplier that quotes an unrealistically low price for marketing research, only to raise it with add-ons, etc., is engaging in the ethical breach known as;

Low-ball pricing.

Explanation:

A market research supplier is a market research company that offers various services to its clients including; problem identification, data collection and analysis, research design and reporting. Businesses rely on accurate and reliable information for their success. This provides a base of knowledge about the existing and prospective customers, which is important in formulating strategies to ensure that set organizational goals are achieved. They also provide information about the competition which can be used to find ways of gaining a competitive advantage over them. Market research is also important in the planning process to ensure that all alternatives are considered beforehand to ensure that only the ones with higher potential of success is considered.

In the field of marketing research, there are ethical standards and practices to be met. Ethical standards are there to control the behavior of professionals in that particular field. However, there are certain behaviors that are considered as an ethical breach. An example is low-ball pricing which is the act of using a low price initially to attract clients then raising the price of the research later on through other means that the client was not aware of.

6 0

4 years ago

you believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid

Svetlanka [38]

Answer:

You should pay a stock price of $33.33

Explanation:

We can use the formula below to calculate the price per share that you would be willing to pay;

RRR=(EDP/SP)+EDGR

where;

RRR-required rate of return

EDP-expected dividend payments

SP-share price

EDGR-expected dividend growth rate

This can also be written as;

Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate

In our case;

RRR=12%=12/100=0.12

EDP=$2

SP=unknown

EDGR=6%=6/100=0.06

replacing;

0.12=(2/SP)+(0.06)

0.12-0.06=(2/SP)

0.06=(2/SP)

0.06 SP=2

SP=2/0.06

SP=33.33

You should pay a stock price of $33.33

6 0

3 years ago

Teams comprised of people from various disciplines are a primary component of ________, which involves product and process desig

nikitadnepr [17]

The answer in the space provided is concurrent engineering. It is because concurrent engineering is the one responsible of having to lead improvement in regards of the organization or company’s reduced cost or its productivity in which is helpful and could brought it for their own benefit.

8 0

3 years ago