Answer:
The answer is a. Organizational behavior
Explanation:
Organizational behavior simply put, is the academic study of how a group of people act within an organization. The results are then utilized to make the organization operate more effectively.
Organizational behavior studies can cover areas such as job performance, job satisfaction, innovations, and leadership within an organization. The goal is simply to see how these areas can be improved, which will then lead to organizational growth.
Organizational behavior is therefore proactive in nature and serves to improve the situations for a person, group of persons, or organization.
Answer:
d. 16% - buy
Explanation:
R = (D1 / P0) + g
Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11
Expected Return = R = ($2/$40) + 11%
R = 0.05 + 0.11
R = 0.16
R = 16%
Expected Return is higher than the required return of 12%. Hence, it should be bought (it is expected to give higher return than required)
Answer:
18.24
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
sustainable growth rate = retention rate x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends
Retention rate = 1 - payout ratio =
payout ratio = dividend / net income
retention rate = 1 - $44,640 / 72,000 = 0.38
Return on equity = net income / average total equity
= 72,000 / 150,000 = 0.48
g = 0.48 x 0.38 = 18.24%
The correct answer is that the price elasticity of demand is elastic.
Price elasticity occurs when a change in price results in a change in demand. In this example, a 20 percent increase in the price of the drinks resulted in a 25 percent decrease in the demand for the product. Because the price increase resulted in a demand decrease the price is elastic.
Answer:
Expected market return is 13%
Explanation:
CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.
As per given data
Expected return = 17.2%
Stock beta = 1.6
Risk free rate = 6%
According to CAPM
Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market Risk Premium )
17.2% = 6% + 1.6 × ( Market return - Risk free rate )
17.2% = 6% + 1.6 × ( Market return - 6% )
17.2% - 6% = 1.6 × ( Market return - 6% )
11.2% = 1.6 × ( Market return - 6% )
11.2% / 1.6 = Market return - 6%
7% = Market return - 6%
7% + 6% = Market return
Market return = 13%
