Answer:
The trader should orders to buy ABC stock or take a long position to the stock.
Explanation:
The stock has been fluctuating for 3 months, hence, its value should be well analysed. Now if there is a breakout through the support level, usually with a good quarterly performance report, the stock is likely to go "bull". Buying and holding the stock is a rational decision.
Answer: The correct answer is "Hershey chocolate bars".
Explanation: For Hershey chocolate bars its manufacturer most likely to use intensive distribution due to the characteristics of the product, which are of the edible type, of consumption and of the type of market in which it is competing, to maintain its competitiveness in the market it is necessary to use an intensive distribution.
It is traditional economics
Answer:
g = 0.0738255 or 7.38255% rounded off to 7.38%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period /year
- r is the required rate of return or cost of equity
Plugging in the values of P0, D0 and r in the formula, we can calculate the value of g to be,
32 = 2.27 * (1+g) / (0.15 - g)
32 * (0.15 - g) = 2.27 + 2.27g
4.8 - 32g = 2.27 + 2.27g
4.8 - 2.27 = 2.27g + 32g
2.53 = 34.27g
g = 2.53 / 34.27
g = 0.0738255 or 7.38255% rounded off to 7.38%
