The firm seeks to develop a company or a business that will run through the years. By not simply seeking a sale or increase its income trough the sales, but to engage the market or the customer's needs and wants base on the goods and services that the industry provides. If a company always seek to the customer's needs and wants the company will surely last for years.
Answer: 6.81%
Explanation:
To calculate the growth rate, we'll use the formula:
Price = Expected Dividend / Discount - Growth rate
32.40 = 2.20 / 13.60% - Growth rate
13.6% - Growth rate = 2.20/32.40
Growth rate = 13.60% - 6.79%
Growth rate = 6.81%
Time is what changes every minute and space is outside of the human body
This cash flow pattern is a(n) uneven type of cash flow.
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Explanation:</u></h3>
Any range of cash flows that don’t agree to the description of an annuity is supposed to be an uneven cash flow stream. For case, a range such as $100, $100, $100 would be deemed an uneven cash flow stream. A large dimension of assets causes uneven or irregular cash flow, causing the method of their valuation cumbersome.
Principle of Value Additivity is very frequently valuable for explaining the estimation of the present or future value of uneven cash flow streams, especially if the cash flows follow some identifiable pattern (such as various progressive annuities).
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