Answer:
The answer is $41.2
Explanation:
This will be solved by Dividend Discount Model which is one of the ways of valuing the price of shareholders' equity.
Here, the future value of dividend payment are discounted using the cost of equity.
Ke = D1/Po + g
Where Ke is the cost of equity
D1 is future dividend payment.
Po is the current share price or stock price
g is the growth rate.
To find the current price of stock price, we need to re write the equation;
Po = D1 ÷ (Ke - g)
D1 = Do x 1.03
= $2 x 1.03
=2.06
Ke = 8% or 0.08
g = 3% or 0.03
So we have;
2.06 ÷ (0.08 -0.03)
$2.06 ÷ 0.05
$41.2
<h2>human element; collusion</h2>
Explanation:
Let us understand the act of collusion.
A secret agreement between two person or two parties to involve themselves in fraud act.
Here the situation is, the clerk has not received raise in salary. So he want to take revenge and has plan to sell the office items for his personal gain. So this is an act of collusion.
<u>Another real life example:</u>
A deal between supplier and retailer to increase the price illegally to have personal benefits.
Let us understand the term human element in a positive way
Human element is the organized way of approach by teams and individual to achieve organizational goals.
Answer: Market Penetration.
Explanation:
Macy is making use of sales promotion and adverts, which aims at increasing their market penetration. Market penetration involves the measures put in place by a business to increase their market presence and gain customers.
Answer:
Approximate rate of return will be 9 %
Explanation:
We have given a stock is purchased on January 1 of cost $4.35
And sold at the same year on December 31
We have to find the rate of return
Rate of return will be equal to = 9%
So approximate rate of return will be 9 %