Answer:
<em><u>Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. When a product is elastic, a change in price quickly results in a change in the quantity demanded.</u></em><em><u>The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.</u></em>
Explanation:
hope it helped you...mate!
Answer:
impulsively stopping persons on the street to inquire about their buying habits
Explanation:
For businesses which are to be started, conducting marketing research can help the business know the products that would generate profits while for existing businesses, market research help companies to determine if their customers are satisfied with their services. Ways of conducting market research are:
- Conducting interviews through phone calls or person to person.
- sending questionnaires by mail or placing them online
- Conducting online surveys
- Buying information from commercial or governmental data sources.
Using information from commercial or governmental data sources may not be reliable because it may be outdated.
Answer:so how ould you want me to answer?
Explanation:
Tim should be in governance.
Suzette should be in planning
Answer:
a. The best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends is 10.91%
a. The best estimate of the company’s cost of equity capital using the geometric average growth rate is 10.88%
Explanation:
a.
Time Dividend per share ($) Growth
-4 1.80
-3 1.98 10.00%
-2 2.05 3.54%
-1 2.16 5.37%
0 2.24 3.70%
Average 5.65%
D0 = $ 2.24 / share
g = 5.65%
D1 = D0 x (1 + g)
= 2.24 x (1 + 5.65%)
= $ 2.37
Current share price = P = $ 45 = D1 / (Ke - g)
The cost of equity = D1 / P + g
= 2.37 / 45 + 5.65%
= 10.91%
Therefore, The best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends is 10.91%
a. What if you use the geometric average growth rate?
A DPS of $ 1.80 / share 4 years back has given way to a DPS of $ 2.24 today.
CAGR, g = (2.24 / 1.80)1/4 - 1
= 5.62%
D1 = 2.24 x (1 + g)
= 2.24 x (1 + 5,62%)
= $ 2.37
cost of equity = D1 / P + g
= 2.37 / 45 + 5.62%
= 10.88%
Therefore, The best estimate of the company’s cost of equity capital using the geometric average growth rate is 10.88%
