Answer:
1. C
2. B. 13.65%.
Explanation:
1. Some of the portion of Earnings After Tax is given out to Shareholders in the form of Dividends and some of it is retained for growth Purposes. As the Retained Earnings are used for expansion and growth, that's why the formula for Growth is (ROE)*(Retention Ratio). When companies pay out large amount of dividends, it is left with minimal amount for retention which affects its growth rate and the rate tends to decrease.
If you look at the model of Constant Growth, also given in the question, the Growth Rate is deducted in Denominator. A lower growth rate will increase the denominator value and hence the stock price will go down.
2. Rearrange the formula for Constant Growth:
P0 = D1 / (Ke - g) OR Ke = (D1/P0) + g
⇒ Ke = (.85/20.5) + .095 = .1365 OR 13.65%.
Answer:
<u>Conscious Marketing</u> entails a sense of purpose for the firm that is higher than simply making a profit by selling products and services.
Explanation:
- The conscious marketing is such a marketing technique in which other people become advertiser of your business. They do such because of your best services or products.
- There are four principles of conscious marketing which are:
- Identification of greater goal of marketing
- Consideration of stake holders
- Creating a conscious leadership
- Understanding that all are decision are ethical
Answer: Both parties are dependent on raising huge sums of money to fund their House campaigns.
Explanation:
Campaigning for office is no cheap endeavour as many politicians have seen and noted. Money needs to be spent on everything from renting venues to buying stationary and so the politicians turn to donors to help.
Regardless of party affiliation, this is the reality for political campaigns which is why both parties rely on huge sums of money to fund campaigns like for the U.S. House of Reps. This is confirmed by the graph described above that shows the hundreds of millions of dollars being used to campaign for the House.
Answer: Deduct the check amount from the bank balance.
A check amounting to $845 was issued to a supplier by Clanton industries in July and during that month the check did not clear the bank. In preparing the July 31 bank reconciliation, the check amount should be deducted from the bank balance considering the check has already been issued to the supplier.