This is ab example of a price floor. It is price that set by the government as a minimum price that would be imposed on a product. This value should be higher than that of the equilibrium price to be effective. It is used in order to prevent the prices to be too low.
Answer:
A) $50
Explanation:
The computation of the intrinsic value of the stock is shown below:
But before that the required rate of return is computed by using CAPM
Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
= 5% + 0.5 × (13% - 5%)
= 5% + 0.5 × 8%
= 5% + 4%
= 9%
Now the intrisinc value is
= Dividend ÷ (required rate of return - growth rate)
= $6 ÷ (9% - (-3%)
= $6 ÷ 12%
= $50
Hence, the intrinsic value of the stock is $50
Therefore the correct option is A.
This is based on income. Income segmentation is when the consumers are segmented as per the yearly or regular income they are making. Income segmentation is best suitable for merchandises which are very exact, position and are valued high. It helps businesses to comprehend the relation between the making of a customer, the value being vacant by the company and the number of possible customers that a business can have.
Answer: Contract are mostly prevalent in the Union jobs which are the jobs in which employees are represented by an organizations which act as an intermediary between the employees and their employers.
This is done in order to ensure that employees are protected from future inevitable inflation that may come unexpectedly as it usually does.
Price is important to managers because it has a substantial effect on a company's profitability and sustainability.
<h3>Why is pricing important?</h3>
The importance of pricing is traced to the fact that defines the value or worth of a product and the number of customers that demand the product.
For the consumer of products, price is a key factor that determines purchase decisions.
Thus, price is important to managers because it has a substantial effect on a company's profitability and sustainability.
Learn more about pricing at brainly.com/question/15569228
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<h3>Question Completion:</h3>
Why is price important to managers?