Answer:
The Seller would be primarily liable
Explanation:
Since in the question, it is mentioned that the seller had sold a house to a buyer for taking up the loan i.e. based on a subject. But after two years the buyer does the default and does not pay the money.
Therefore for lending the note, the seller is primarily liable as the seller permit the buyer for taking the loan
Sales decline in the decline stage of the PLC because of technological advances, shifts in consumer tastes and preferences, and Increased competition.
Explanation:
The decline stage of the product life cycle is the final phase when sales and production are eventually stopped. Profitability will eventually decrease, and production will stop. It is no more profitable.
A decrease in sales is seen with increasing competition and product preference falling. A decline in the sales price leads to lower profits and losses for the company in some cases.
When market competition grows and several firms start dominating the market, revenue and profits are hard to sustain for the failing businesses. With the developments in new technology, consumer tastes will also shift, which may ultimately make goods redundant.
Answer:
The new price will be $11.89 if the market risk premium falls to 8% changing the required rate of return to 15.6%.
Explanation:
We will calculate the price of the share today using the constant growth model of DDM as the stock's dividends are growing at a constant rate forever. The formula for constant growth model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend expected for the next period or D1
- r is the required rate of return
- g is the growth rate in dividends
We need to find the new required rate of return. The required rate is unknown and can be calculated using the CAPM. The required rate under CAPM is,
r = rRF + Beta * rpM
r = 0.06 + 1.2 * 0.08 = 0.156 or 15.6%
Plugging in the available values for new r, g and D0 to calculate price today,
P0 = 1.2 * (1 + 0.05) / (0.156 - 0.05)
P0 = $11.886 rounded off to $11.89
Answer:
Explanation:
check attached files below for explanation..
Answer: properly diagnose the cause of problem
Explanation: In simple words, problem diagnosis refers to the process under which the manager of an organisation tries to find the weak link due to which whole process is getting failed.
In the given, the decrease in customer was happening due to incompetent staff but the manager though of it as the problem in menu.
Hence he failed to diagnose the problem and find the weak link.