Answer:
<u>A Star.</u>
Explanation:
The Boston Consulting Group (BCG) matrix depicts a product's market share against the market growth rate. The matrix is also known for it's cow- dog metaphor.
The matrix represents 4 situations namely:
1. Stars : Products with high market share in high growth markets i.e high- high situation.
2. Cash Cows: Products with high market share in low growth markets.
3. Question Mark: Products with low market share in a high growth markets.
4. Dogs: Products with low market share in low growth markets.
In the given case, the product dominates the market i.e high market share. Secondly, it operates in a high growth market. Which means, the product belongs to the situation of a Star.
Answer:
Maximum price to be paid for the stock = $12.43
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>
Year PV of dividend
1 8 ×1.15^(-1)
2 4 × 1.15^(-2)
3. 2 × 1.15^(-3)
4 2 × 1.15^(-4)
PV of dividend = (8 ×1.15^-1) + (4 × 1.15^-2) + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439
Maximum price to be paid for the stock = $12.43
Answer:
37.25%
Explanation:
Average total common stockholders' equity:
= (Beginning common stockholders' equity + Ending common stockholders' equity) ÷ 2
= ($530,000 + $490,000) ÷ 2
= $510,000
Return on Equity = Net income ÷ Average total common stockholders' equity
= $190,000 ÷ $510,000
= 0.3725
= 37.25%
Answer:
The correct option is a. Debtors
Explanation:
In this question, we categorized the internal and external users or a group who are interested in the financial information about a business.
Internal users are those users who work in an entity which includes employees, owners, managers
Where, external users are those users who are outside the entity that includes suppliers, lenders, creditors, government agencies, bank,general public,etc.
These users are interested to interpret the financial leverage of the company.
By going through the meaning we get to know that the debtors are not normally interested in the financial information about a business.
Hence, the correct option is a. Debtors.
Answer:
- a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.
- a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.
Explanation:
When the LM curve is horizontal, a change in money supply will not impact interest rates which would make monetary supply completely ineffective because people will be able to keep borrowing regardless of the money supply level in the economy.
If the IS curve is vertical, it means that output is independent of interest rates. This would again render monetary supply completely ineffective as output will not change as a result of a change in money supply. Fiscal policy will still work however because it would lead to more output being created via the multiplier process.
