Spam email is unsolicited selling or advertising though email messages - sending a lot of spam messages can result in getting blocked or creating a negative image in the consumer's mind because it is annoying and un-requested communication.
The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).
Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)
The opportunity of exploiting market niches is highlighted in the given scenario.
Explanation:
A market niche is "a small but profitable segment of a market suitable for focused attention by a marketer. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them. See also market segmentation.
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Reference: WebFinance Inc. “What Is Market Niche? Definition and Meaning.” BusinessDictionary.com, 2019
Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
