Answer:B
Explanation:
This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.
The required rate of return on the stock of Dell company is come out to be 8.89%.
<h3>What is a stock?</h3>
Stock represents the number of shares being owned by an investor in the company on which it gets the dividends.
Given values for step 1:
The required rate of return: 12%
Beta factor: 1.40
Risk-free rate: 4.75%
<u>Step-1</u> Computation of market risk premium:
Given values for step 2:
Market risk premium: 5.18%
Beta factor: 0.80
Risk-free rate: 4.75%
<u>Step-2</u> Computation of required rate of return:
Therefore, the return of 8.89% comes out to be the required rate of return for the stock of Dell Company.
Learn more about the required rate of return in the related link:
brainly.com/question/14667431
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Answer: the correct answer is (B) newly rich consumers will not buy the watches if the watches are not advertised to people who are not yet wealthy who will then hold the watches in high regard
Explanation:
The paragraph says that that most purchasers of Brand X's luxury watches have only recently become wealthy and buy this brand so the logical argument is to reach "recently become rich" to attain higher sales. Advertizing in the magazine mentioned is not guarantee that the "new rich" will buy more watches since we don't know if they read the magazine mentioned.
Answer: Reveals how many times a company sells its merchandise inventory during a period.
Explanation:
The Inventory Turnover Ratio is used to measure how often a company is able to sell off all its inventory within a single period. The higher this is, the better because it means that the company has a high sales rate and is incurring low storage costs since the inventory does not stay with them for long.
It is important to use this ratio relative to the type of industry it is being applied to however. For instance, a car dealership would be expected to have a lower inventory turnover ratio than a grocery store so comparing them using this ratio would be inaccurate.
