Answer:
Expected return or the cost of equity capital for the firm = 14%
Explanation:
V(0) = D1 / r - g
v = 20, D1 = 2, r = ?, g = 0.04
20 = 2 / (r - 0.04)
20r - 0.8 = 2
20r = 2 + 0.8
20r = 2.8
r = 2.8/20
r = 0.14
r = 14%
Note: Application of constant growth dividend discount model was required to solve the question
Answer:
b. Fair Pricing
Explanation:
Fair Pricing is the degree to which both businesses and customers believe that the pricing is reasonable. It is necessarily not the lowest price but both seller and buyers are very much satisfied with it because buyers are willing to pay that price and it is quite affordable and at the same time, firms are also very much contended with this price because they can make good reasonable profits at this price as well, therefore, it is a win-win station for both customers and organizations.
Answer:
An office is a location the management of a business can use for the planning, organization, control, direct, and recruit staffs for a business. An office is the place information records are kept and it is used as the channel through which the business makes communication with other businesses, individuals and the public.
The smooth operations of an organization requires the availability of an office as it is the place the business activities are performed
An office is as important to an organization as the brain is to the body of a living organism
Explanation:
Answer:
The correct answer is option a.
Explanation:
The cost of capital is the price of borrowing capital. It is the rate of return that the borrowers have to pay. Or the investors get on their investment.
The cost of capital in a purely domestic market is higher than that in an international capital market. This is because easy availablity of capital in international market keeps the rates low.