Answer:
30.92%
Explanation:
You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM
<u>Dividend discount model;</u>
cost of equity; r = (D1/P0) +g
whereby, D1 = next year's dividend = 3.00
P0= current price = 13.65
g = dividend growth rate = 11% or 0.11 as a decimal
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r= 0.3298 or 32.98%
<u>Using CAPM;</u>
r = risk free + beta (Market risk premium)
r = 0.049 + (2.8 * 0.0856)
r = 0.049 + 0.2397
r = 0.2887 or 28.87%
Next, find the average of the two cost of equities;
=(32.98% + 28.87% )/2
= 30.92%
Correct question:
A winning formula for many ________ brands is craftsmanship, heritage, authenticity, and history, often critical to justifying a sometimes extravagant price.
A) design
B) non durable
C) durable
D) ingredient
E) luxury
Answer:
E, luxury
Explanation:
When a product is being purchased irrespective of it price, the manufacturer is said to have found a winning formula.
from the above question, a luxury item that is authentic with an history behind it as well as exccellenct craftsmanship amongst other things ensure that the item is continually sold no matter what price it is.
Cheers.
Answer:
91 days
Explanation:
Here, we are to calculate the average number of days it will take to sell its inventory in 2019.
We proceed mathematically as follows;
Inventory turnover=COGS/Average inventory
Average inventory=(192,000 + 202,000)/2=$197,000
hence inventory turnover=(790,000/197,000)= 4.01
hence average days to sell=365/4.01 =91 days (approx)
Answer: Reactive Public Relation
Explanation:
Here, in this particular case we can state that the reactive public relation tends to best describe this approach taken by the industry. Traditionally, the reactive public relation is known to be referred when there is a requirement for crisis management. For several organizations , the known resort still tends to be reactive public relation.
