Answer:
a. return rate ,r =24%
b. Yes
c. see the explanation below
Explanation:
a. Let's represent customer’s expected return if she borrows the money with 'r'
100 -90 = $106/(1+r) - 90*1.04/(1+r)
10= 12.4/(1+r)
1+r= 1.24
r=24%
b. It is obviously true that borrowing makes investment more attractive .
c. In both operating periods and bankruptcy, the debt has a fixed life and has a priority claim on cash flows. This is due to the fact that interest is paid before the claims to equity holders, and should in case the company fails on interest payments, it will be declared bankrupt, its assets will be sold, and before any payments are made to equity holders, the amount owed to debt holders will be paid
Answer:
The required return on the stock is 11.89%.
Explanation:
To calculate this, the Gordon growth model (GGM) formula is used as follows:
P = d1 / (r – g) ……………………………………… (1)
Where;
P = current share price = $77
d1 = next dividend = Recent dividend * (1 + g) = $5.37 * (1 + 0.046) = $5.61702
r = required return = ?
g = dividend constant growth forever = 4.6%, or 0.046
Substituting the values into equation 1) and solve for r, we have:
77 = 5.61702 / (r - 0.046)
77(r - 0.046) = 5.61702
77r - 3.542 = 5.61702
77r = 5.61702 + 3.542
r = 9.15902 / 77
r = 0.1189, or 11.89%
Therefore, the required return on the stock is 11.89%.
This is an example of theory of socialism. The survival of relatively high tax rates and the emphasis on government programs to reallocate income are trademarks of socialism. Under socialism, governments commonly own some, if not most, basic businesses. Nonetheless, socialism, unlike communism, does permit at least some private ownership of businesses as well.
Answer:
Micro-marketing targeting strategy
Explanation:
In the micro-marketing targeting strategy the company focuses on a very small number of potential customer because getting tenders from any of these would easily breakeven the company. The only source of income for such new businesses are their former employer or company who might contract with them for provision of product or services and from its great contacts value that the company possesses which can be used to influence the behavior to opt to the products and serives of this new company.
Answer:
C. a provision that requires the employee to prove his case.
Explanation:
Arbitration is a form of resolving dispute outside of the court system. Here, the parties involved agrees to have their dispute settled through a third party other than a judge. Mandatory arbitration is a provision that is included in a contract , which requires concerned parties to resolve their contract dispute before an arbitrator instead of the normal court system.
In a situation where one of the parties to a contractual agreement feels cheated or the other party has not performed his term of the agreement, such may seek redress through an arbitrator. For a mandatory arbitration to be enforceable, there must be a provision that the employee pay the cost of the arbitrator's service and also a provision that the employer has the right to choose any arbitrator.