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Anit [1.1K]
3 years ago
6

Liam owns a far horizons travel agency franchise. as a franchisee, liam is guaranteed the right to retain all of his franchise's

revenues and profits.
a. True
b. False
Business
1 answer:
FinnZ [79.3K]3 years ago
6 0
The statement that as a franchisee, Liam is guaranteed the right to retain all of his franchise's revenues and profits is false. 
Franchisees usually pay a royalty to the franchisor - the party that gets <span>the right to market a product or service using the trademark or trade name of another business (franchisee)</span>. The royalty can be a share of the franchisee's revenues or a share of the franchisee's profits.
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3 years ago
Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate 6.4%. Assuming the stock market i
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Answer:

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Explanation:

given data

market risk premium = 6.0%

risk-free rate = 6.4%

                                                       A                                        B

Beta                                                1.10                                    0.90

Constant growth rate                    7 %                                     7%

to find out

does stock A has higher dividend yield than Stock B

solution

we get here Stock A rA = 6.4% + 1.1 × 6%

Stock A rA  = 13.00%

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and

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Stock B rB = 11.80%

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Dividend yield of stock B = rA - g

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Dividend yield of stock B = 4.80%

so we can say Yes, Stock A has higher dividend yield

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