Answer:
The answer is D
Explanation:
Option D is correct. Porter's five forces analysis is used to determine the intensity of competition in an industry.
This intensity determines how profitable firms in the industry will be.
The five forces are:
1. Bargaining power of consumers
2. Bargaining power of producers.
3. Threat of new entrants - this is the new competition coming into the industry
4. Threat of substitute goods.
5. Competitive rivalry.
Stimulants is your answer please mark brainliest
Answer:
The price that will be paid for the stock today is $49.84
Explanation:
The company is expected to grow the dividends at a constant rate, thus the constant growth model of DDM will be used to calculate the price of the stock today. The formula for the price of the stock is:
P0 = D1 / r - g
Where,
- D1 is the dividend expected for the next period
- r is the required rate of return
- g is the growth rate in dividends
P0 = 3.14 / (0.1 - 0.037)
P0 = $49.84
Answer:
The market value of equity should be used.
Explanation:
Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.
So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.