The answer you are looking for is a planned economy
Answer:
Share price : $ 56.23
Explanation:
CAPM
risk free = 0.05
market rate = 0.11
premium market = (market rate - risk free) 0.06
beta(non diversifiable risk) = 1.64
Ke 0.14840
Now, we solve for the present value of the future dividends:
year dividend* present value**
1 2.91 2.53
2 3.31 2.51
3 3.78 2.49
4 4.31 2.48
4 80.38 46.22
TOTAL 56.23
*Dividends will be calculate as the previous year dividends tiems the grow rate
during the first four year is 14%
then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:
(4.31 x 1.09) / (0.1484 - 0.09) = 80.38
Then we discount eahc using the present value of a lump sum:
We discount using the CAPM COst of Capital of 14.84%
last we add them all to get the share price: $ 56.23
Answer:
True.
Explanation:
True. The given statement is true because the domestic strategy refers to the strategy of a company to expand its business and find the new market for their products. So, the new market can be found by internationalizing the goods by the firm. Moreover, early-stage firms focus on the domestic market but as their business grows or production increases then it starts selling its goods and services in foreign markets.
Answer:
1999 Merger of Exxon and Mobil
The reason that made the U.S. government to require Exxon and Mobil to divest themselves of so many gas stations in localized parts of the country to be willing to allow the merger to occur is:
c. To ensure competition in these regions and protect consumers from unwarranted price increases.
Explanation:
The agreement to sell so many gas stations in localized parts of the country was to forestall antitrust lawsuits. It was also made to protect consumers from unwarranted price increases, allowing more competition in the affected areas, where ExxonMobil owed too many gas stations.
Answer:
3.88%
Explanation:
ROA = Net income/Total assets
ROA = $972/$16,127
ROA = 0.0602716
ROA = 6.03%
Retention ratio = 1 - Payout ratio
Retention ratio = 1 - 0.38
Retention ratio = 0.62
Internal growth rate = (ROA*Retention ratio) / [1 - (ROA*Retention ratio)]
Internal growth rate = 0.0602716*0.62 / 1 - (0.0602716*0.62)
Internal growth rate = 0.037368392 / 1-0.037368392
Internal growth rate = 0.037368392/0.962631608
Internal growth rate = 0.038818995
Internal growth rate = 3.88%
