B2C stands for business to consumer. This would be the sales you’d make to a consumer. B2B stands for business to business. This is the sales you’d make with another business.
Answer:
Cost of Equity = 11.30%
Explanation:
Computation Cost for Equity
Using Gordon Model
Market Price = [Dividend × (1 + Growth Rate )] / (Cost of Equity - Growth Rate)
41.08 = [$3.01 × (1 + 0.037)] / (Cost of Equity - 0.037)
41.08 = [$3.01 × (1.037)] / (Cost of Equity - 0.037)
Cost of Equity - 0.037 = $3.12 / 41.08
Cost of Equity - 0.037 = $0.076
Cost of Equity = 0.076 + 0.037
Cost of Equity = 0.1130
Cost of Equity = 11.30%
As the price of ice cream increases, so the demand by consumers may decrease, decreasing the quantity of ice cream cones demanded (provided that all consumers eat ice cream with a cone!)
INVESTING IS THE CORRECT ANSWER ]
