Answer:
a strategy where someone sets a high price at first to attract people who like it a lot enough to buy it at that price but slowly lowering it over time so that even people who arent as desperate to buy it will possibly buy it as well.
Answer:
fetching and holding materials
moving materials between work areas
keeping records
cleaning machinery
Explanation:
These are correct on edge
Answer: "systematic review" .
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Answer:
stock price = (Div 1 / r - g1) x {1 - [(1 + g1) / (1 + r)]ⁿ} + (Div 1 / r - g2) x [(1 + g1) / (1 + r)]ⁿ⁻¹
Explanation:
since the company will first grow at g1 for n years, and then at g2 forever, we need to first determine the present value of the dividends growing at g1 for n years:
present value of the dividends during n = (Div 1 / r - g1) x {1 - [(1 + g1) / (1 + r)]ⁿ}
e.g. div = $2, n = 5 years, g1 = 8%, r = 12%
(2 / 12% - 8%) x {1 - [(1 + 8%) / (1 + 12%)]⁵} = 50 x 0.166263 = $8.31
now we find the formula to calculate the present value for the growing perpetuity g2 at n - 1 years:
= (Div 1 / r - g2) x [(1 + g1) / (1 + r)]ⁿ⁻¹
following the same example but changing g1 for g2, and g2 = 5%
= (2 / 12% - 5%) x [(1 + 5%) / (1 + 12%)]⁵⁻¹ = 28.5714 x 0.772476 = $22.07
we now add both parts to finish our example = $8.31 + $22.07 = $30.38
Answer:
rs=14.68%
F=15%
re=16.56%
Explanation:
using the constant growth model:
where P0 is the current stock price
D1 is the dividend expected at the end of the 1st year
rs is cost of retained earnings.
Rearranging to make rs subject of the formula:
if Evanec issues new stock, they will only net $31.45 down from $37 per share due to floatation costs. The difference, ie $37-$31.45 = $5.55 is due to floation costs.
The percentage floatation costs (F) are 
alternatively, one can recognise that 
and F = 15%
Cost of new common stock re is calculated as follows:
