16% is the answer.
<u>Explanation:</u>
<u>The following is used in order to calculate the cost of the retained earnings.
</u>
The Calculation of cost of retained earnings by using bond yield plus the risk premium method
= Long term bond yield + the risk premium
The Long term bond yield = 12 percent
The risk premium = 4 percent
Cost of retained earnings = 12 percent plus 4 percent = 16 %
Therefore, the correct option will be with the 16 percent
.
Answer:
a) resources are limited and efficiency implies that all resources are already in use
Explanation:
If production is efficient, it means that the economy is producing on the production possibility frontier and all resources are in use.
To produce one unit of a good, the economy has to forgo producing one unit of the other good.
I hope my answer helps you.
Answer:
Value = $23.35
Explanation:
First, find dividend per year using the growth rates given;
D1 = 2.45
D2 = 2.45 (1.30) = 3.185
D3 = 3.185 (1.17) = 3.7265
D4 = 3.7265 (1.17) = 4.3600
D5= 4.3600(1.08) = 4.7088
Next, find the PV of each dividend;
PV(D1) = 2.45 / (1.22) = 2.0082
PV(D2) = 3.185 /(1.22²) = 2.1399
PV(D3) = 3.7265/ (1.22³) = 2.0522
PV(D4) = 4.3600/ (1.22^4) = 1.9681
PV(D5) =
15.1825
Next, sum up the present values to find the current value of the stock;
=2.0082+ 2.1399 + 2.0522 + 1.9681 + 15.1825
Value = $23.35
The price paid to each factor adjusts to balance the supply and demand for that factor. Because factor demand reflects the value of the marginal product of that factor, in equilibrium, each factor is compensated according to its marginal contribution to the production of goods and services.
<h3><u>
Explanation:</u></h3>
The incremental profit that is being earned for an additional single unit by subtracting the price of the product and all the variable cost that is associated with that product is the marginal contribution. It is the earnings that is obtained in total for paying all fixed expense and also for the profit generation.
The price that is spent for the every factor in order to adjust balancing the supply and demand of that particular factor. This is because of the reason that, the value of the marginal product of any factor is controlled by the demand factor. Thus in an equilibrium state there will be a compensation of each factor based on the marginal contribution to the production of goods and services.
Answer:
Direct selling succeeds because it provides customers with a social shopping experience.
Explanation:
Direct selling: In business, the term "direct selling" is described as a process of selling different products to the specified customers directly in a "non-retail environment". However, the products that are being sold through "direct sales" are generally not found in some typical locations, that means finding a specific rep or distributor is considered as a single method of buying different services or products.