Answer:
A. Market Capitalization rate = 13%
B. Intrinsic Value = $46.22
Explanation:
<em>A. Market Capitalization rate:</em>
CAPM should be used to calculate market capitalization from the given data. Following is the formula for CAPM

r = risk free rate
M = market portfolio return
B = beta
Solution:

CAPM = 13%
<em>B. Intrinsic Value of stock</em>
Gordon Growth Model (GGM) should be used to calculate intrinsic value of stock based on the given data.
Following is the formula for GGM

D = Current Dividend
g = Dividend Growth rate
r = market capitalization rate (CAPM calculated in part A)
Solution:

DDM = $46.22
<em>Note: All values are rounded off to two decimal points.</em>
Answer: a. 10%
b. -30%
Explanation:
a. What is the percentage change in the price of milk?
Old price = $5.00
New price = $5.50
Percentage change = ($5.50 - $5.00)/$5.00 × 100
= 0.50/5.00 × 100
= 1/10 × 100
= 10%
Percentage change on price = 10%
b. What is the percentage change in the quantity demanded for Boo Berry Cereal?
Old quantity = 1000
New quantity = 700
Percentage change = (700 - 1000)/1000 × 100
= -300/1000 × 100
= -30%
The percentage change in the quantity demanded for Boo Berry Cereal is -30%.
Answer:
<em> </em><em>interest </em><em>earned</em><em> </em><em>on </em><em>both</em><em> </em><em>the </em><em>initial</em><em> </em><em>principal</em><em> </em><em>and </em><em>the </em><em>interest </em><em>reinvested </em><em>from </em><em>prior </em><em>periods </em><em>is </em><em>called </em><em><u>compound</u></em><em><u> </u></em><em><u>interest</u></em><em><u>.</u></em>
________________________________
<em>Compound </em><em>interest</em><em>.</em><em> </em><em>The </em><em>interest</em><em> </em><em>which </em><em>is </em><em>added </em><em>on </em><em>to </em><em>the </em><em>initial</em><em> </em><em>investment</em><em>,</em><em> </em><em>so </em><em>that</em><em> </em><em>this </em><em>will </em><em>itself</em><em> </em><em>gain </em><em>interest </em><em>in </em><em>subsequent</em><em> </em><em>perio</em><em>d</em><em>s.</em>
Southwest Airlines offers vacation packages that include airfare, car rental, and lodging. Southwest is using a(n) <u>bundle </u>pricing strategy.
What is bundle pricing ?
A pricing strategy in which managers offer multiple products or services as a single package ("bundle") is called bundle pricing.
Motivation of bundle pricing:
Particularly useful if your customers' demand is highly variable but price discrimination is impractical.
When consumers' price sensitivity of demand varies widely and market conditions make price discrimination difficult
If customers have diverse tastes, it can increase the seller's profit.
It is a method of simulating perfect price discrimination when perfect price discrimination is not possible or when charging multiple prices for the same product is illegal.
Types:
Simple Bundling: When managers offer multiple products or services in a single package so that customers do not have the option of purchasing package components separately
Mixed Bundling: Allows customers to purchase package components as a whole or separately.
Learn more about bundle pricing here: brainly.com/question/23175408
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That statement would be false
Reducing the number of sellers means that the quantity of the products that available in the market is also reduced
This will cause the curve to move to the left ( it goes right if the quantity of the products is increased)