Expected price next year = $62.58
Beta is 0.75, PO is $50, D1 is $2, RF is 11%, and RM is 4%.
Where,
Expected Dividend = D
Po = Price as of today.
Risk-free Rate is Rf.
Market risk premium is Rm.
g = rate of growth
Equity cost is Rf plus beta minus Rm.
Equity cost is 11% plus 0.75 and 4%.
Equity cost = 3.33%
Making use of the Dividend Discount Model to Estimate Growth Rate
(D1/P0) + g = ke
(2/50) + g = 3.33%
0.04 + g= 3.33%
g = 3%
Expected price for the following year = $2*1.033/ (0.03-0.033)
Expected price next year = $62.58
What is Expected price?
As its name suggests, predicted price level is a forecast that takes into account accurate evaluation of pertinent economic data to foretell what will happen with those goods and services in the future. Making changes to this level when new information becomes available is essential because unknowable factors may become real over time.
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In making the best economic choices, consumers compare the benefits of the choice to cost.
<h3>What is economic choice?</h3>
economic choice can be regarded as the decision making by the consumer to choose the kind of product that is needed by them economically.
Therefore, the consumer usually consider the cost In making the best economic choices, as well as the benefits.
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Answer:
The answer is: Strategic alliance
Explanation:
Strategic alliance refers to an agreement between two or more companies that will work together to pursue common goals or objectives. Each company will remain independent and their collaboration is solely to achieve a specific common objective. In this case, Alpha and Microchips will continue to work independently and will work together as one only in China.
True, in some cases I would argue.
b. financial intermediaries
Financial intermediaries are financial institutions whereby savers can indirectly provide borrowers with funds.
