Answer:
10.4%
Explanation:
The formula to calculate the cost of equity is:
Cost of equity= (DPS/MPS)+r
DPS= Dividend per share
MPS= Market price per share
r= Growth rate of Dividends
Cost of equity= (2.77/40.12)+0.0350
Cost of equity=0.069+0.0350
Cost of equity=0.104→ 10.4%
The company's cost of equity if the current stock price is $40.12 per share is 10.4%.
Answer:
Explanation:
From the above question, three reasons for the downward slope of the demand curve and the effect with the component of aggregate demand are:
1. Net Exports : the international trade effect
2. consumption : the wealth effect
3. investment : the interest rate effect
Answer:
a. Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.
Explanation:
In order to solve a problem managers should follow logical steps to solve it correctly. First, the problem needs to be defined and all the possible ways in which the problem could be resolved should be listed. Then, the solutions should be analyzed to determine which one is the best one for the specific case. After that, it should be implemented properly and the last step will be to evaluate the solution to get feedback and determine if it fixed the problem or if another solution will need to be found to deal with it.
Answer:
67%
Explanation:
Money supply = Money multiplier * Deposit worth
3 = Money multiplier * 2
Money multiplier = 3/2
Money multiplier = 1.5
Now, Money multiplier = 1 / Reserve ratio
1.5 = 1 / Reserve ratio
Reserve ratio = 1/1.5
Reserve ratio = 0.6667
Reserve ratio = 67%
So, the percent of deposits the banks hold as reserves is 67%
Answer:
The total sales of a product, by all competitors in the industry, is:____
e. lowest in the market introduction stage.
Explanation:
The product life cycle refers to the time period when a product is first introduced to a market until it exits the market. There are four main stages in a product life cycle. They include introduction, growth, maturity, and decline. It is during the introduction phase that the total sales are lowest. The low sales are witnessed again during the latter stage of decline. The highest sales are achieved during the maturity stage.
