Answer:
The stock should be trading at $14,74 today
Explanation:
In Capital Market Asset Pricing (CAPM) model. expected return = risk-free rate + beta*(market risk premium - risk-free rate)
= 5% + 1*(6%-5%) = 6%
If Analysts have a consensus view that the stock will be valued at $15.62 next year, then basing on expected return 6%, the stock price today should be
= $15.62%/(1+6%) = $14.74
Answer:
b. Channel conflicts
Explanation:
Channel conflicts -
It refers to any feud, dispute or any difference between two or more partners of the business , is referred to as the channel conflicts .
In this case one of the partner starts a similar business separately , and tries to be a very tough competitor for the existing company .
The method is adapted to earn more profit .
Hence , from the given scenario of the question ,
The correct answer is b. channel conflict .
Answer:
$10,600
Explanation:
The total amount that the students will pay will be the total of monthly installments plus the deposit
Deposit =$1000
total monthly installments = $200 x 48 = $9600
The total amount he will pay = $ 9600 +$1000
=$10,600
Answer:
e. Projects with "normal" cash flows can have only one real IRR
Explanation:
Normal cash flow refers to normal expected cash flow from the project, it might be negative, or positive. But generally there is a pattern in such cash flows. Initially they might be negative, but as the project starts getting mature there is positive cash flow.
This is normal circumstance. Under this there is only one real IRR. IRR is represented as the rate of return where present value of inflows = present value of outflows.
Thus, statement is true and correct.
Answer:
See the explanation below
Explanation:
Significance of price elasticity of producers:
- useful in pricing decisions
- when demand is elastic, firms have to reduce their price to earn more revenue
- when demand is inelastic firms need to raise prices to earn more revenue
