Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).
Explanation:
Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.
The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.
Answer:
The answer is economies of scale .
Explanation:
Government license, patents and public franchise are all forms of legal barriers that prevents new entrants from copying, imitating or entering the market. However, economies of scales are a economic barrier that arises due to the scale of operations of a firm and is not a legal barrier.
Answer:
The correct option is C,dogs
Explanation:
Stars are characterized by high market share in a high growth market,with large of expenditure required to keep up with the intense competition and innovation in the market in order to transform it to cash cow.
Cash cow are the most profitable products as they provide large of amount of cash that can be reinvested in stars as well as in a problem child with high growth potential
The dogs are usually known to control an insignificant portion of slow growth market with revenue and cash flows being on declining path
Answer:
strategic alliance
Explanation:
Based on the scenario being described within the question it can be said that the relationship in this scenario is best referred to as a strategic alliance. This term refers to an agreement between two parties in which they both help each other reach an agreed upon goal but still remain as their own independent organization. Instead it is only a strategy to reach the goals at a much faster time-frame than if each company were doing it alone.
1) When all the money you make in one paycheck goes only into staying on top of your bills
2) Create a list of mandatory things like electric, water and rent and make sure to "pay yourself first" ~Dave Ramsey
