Answer:
$21.37
Explanation:
g = -5.4%
D0 = $3.93
D1 = D0 (1+g)
D1 = 3.93*(1-0.054)
D1 = 3.93*0.946
D1 = 3.71778
Investors require a return (ke) of 12%
P0 = D1/(ke - g)
P0 = 3.71778 / (12% - (-5.4%)
P0 = 3.71778 / (12% + 5.4%)
P0 = 3.71778 / 17.4%
P0 = 3.71778 / 0.174
P0 = 21.3665517
P0 = $21.37
So, the expected price of the stock next year is $21.37.
Answer:
Below-market pricing policy
Explanation:
A below-market pricing policy is one in which an organization decides to sell its goods or services <u>at a price lower than what is currently available in the market.</u>
An organization that uses this policy, does it <u>to increase then number of customers visiting its stores and to generate more sales.</u>
Answer:
The correct answer is B
Explanation:
Delivery gap is the gap which is the difference among the service delivery policy and the standard and the actual delivery of the product or the service.
Marcel works in the department of linen, so when the customer reaches the store for collecting the tablecloth ordered by her but got disappointed by knowing that the delivery has been delayed. Therefore, Marcel is trying to cover the delivery gap by offering that the product will be delivered to the residence of the customer.
