Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
- rRf is the risk free rate
- rM is the return on market
r = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Answer:
Consultation
Explanation:
Consultation is asking someone else to recommend enhancements or help . consultation is the second most basic strategy. People who utilise this strategy regularly were bound to be evaluated exceptionally successful. consultation is best used when others have data and experience you don't and when you are willing and ready to follow up on the thoughts and recommendations of others.
Answer:
c. discounted drinks
Explanation:
honestly i don't know why it would enhance your products when the rest is much more favorable.
Answer:
The summary of the given statement is summarized throughout the below segment.
Explanation:
Cash dividend declared:
- The cash payment will be made by stakeholders as either revenue, as well as the company's stock decreases through the equal amount of payment announced each unit.
- Consequently, the 'Modigliani and Miller' approach does not result throughout almost every gains or loss to particular stockholders
Buyback of Shares:
- Throughout this scenario, the Business acquires up later the current owners' personal or existing interests.
- Therefore that on the day of purchase, stockholders receive the identical payment.
The technique is called: interclass correlation
Interclass correlation define the connection between two variables that belong to different classes,and commonly used for countable measurements that made for several groups of subject. Currently, this type of correlations is among the most commonly used by marketing unites to research various information about their products (such as popularity, segmentation, positioning, etc_)
