Answer:
Required rate of return= 16%
Stock price= $13.50
Explanation:
A share of BAC common stock just made a dividend payment of $1
Market return is 12%
Beta is 1.5
Risk-free rate is 4%
Growth rate is 8%
The required rate of return for the stock can be calculated as follows
Required rate of return= Risk-free rate+beta×(market rate-risk-free rate)
= 4%+1.5(12%-4%)
= 4%+1.5×8%
= 4%+12
= 16%
The stock price can be calculated as follows
Stock price= dividend for the year/(rate of return-growth rate)
= (1×1.08)/(16/100-8/100)
= 1.08/0.16-0.08
= 1.08/0.08
= $13.50
Hence the required rate of return and the stock price is 16% and $13.50 respectively.
Answer:
$86.67 is the profit maximizing price for the monopolist
Explanation:
In order to find the profit maximizing price for the monopolist using its price elasticity and marginal cost we have to use the formula
Price= Marginal cost* (elasticity/elasticity+1)
Marginal cost = $65.0065
Elasticity = -4
Price = 65.0065 *(-4/-4+1) = 65.0065*(-4/-3)= 86.67
The answer to the above situation or condition is Customer and supplier intimacy.
If a company or organization have a strategy on customer and
supplier intimacy, this makes customers and suppliers valuable and important
stakeholder within the company or organization. When they are important
stakeholders they will feel themselves more valued.
Answer:
specialty shopping
Explanation:
Based on the scenario being described within the question it can be said that this type of shopping is referred to as specialty shopping. This refers to when an individual goes through extra special purchasing efforts in order to find and purchase a particularly unique product with the correct characteristics that the buyer wants. Which is exactly what Diana has done in order to find the dog that she wanted.
Answer:
uhhhhhhhhhhhhh i guess teacher
Explanation:
