Answer:
The correct answer is: raise interest rates and restrict the availability of bank credit.
Explanation:
A restrictive monetary policy is also known as contractionary monetary policy. It aims to decrease the aggregate demand by reducing the supply of money in the economy.
It involves a number of tools that raise the interest rate and make borrowing expensive. In this way, it restricts liquidity in the economy.
There are a number of tools that can be used to implement this policy, for instance, sale of securities in the open market, increasing discount rates, increasing reserve ratio, etc.
Answer:c. 12.0%
Explanation:Return on Investment (ROI) is a measure used by firms in order to determine how effective an investment is in terms of gains from its proceeds when compared to the amount invested .
Given
Yellowday Energy margin as 3%
turnover= 4.0 and sales as $50million,
we can calculate the ROI,Return on Investment , as the Profit margin multiplied by turnover
ROI = Profit Margin x Turnover
= 3% x 4.0
= 0.03 x 4.0
=0.12
0.12 x 100
= 12.0%
Answer:
B. Emergent strategy
Explanation:
The scenario illustrate emergent strategy.
Emergent strategy: It can also be called "realized strategy". It refers to the pattern of action developed over time by a firm in the presence of absence of specific mission and goals. It implies that an organization is learning what works in practice.
Emergent strategy can be defined as a set of actions, or behavior, consistent over time that was not intended. It is a strategy that develops when an organization takes a series of actions that becomes a consistent pattern of behavior with time.
Emergent strategy involves strategic and tactical changes which responds to events as they arises.
Answer: defines the advertising objectives
Explanation:
Answer:
a. Expected rate of return = 10%
b. Expected rate of return = 12%
Explanation:
Using dividend growth model we have,
where P = Current market price
D = Dividend at the year end
K = Expected return
g = growth rate
Putting values in the above we have,
a. $64 =
=
K = 0.07 + 0.03 = 0.1 = 10%
b. $64 =
=
K = 0.07 + 0.05 = 0.12 = 12%
Final Answer
a. Expected rate of return = 10%
b. Expected rate of return = 12%