Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The correct answer is letter "B": Order Qualifier.
Explanation:
An Order Qualifier represents the minimum features a good or service must meet so consumers can think about purchasing them. Variables that could fall into this category are price, convenience or the product's reputation. If the good or service accomplishes one of those characteristics and is of preference of the consumers, then the firm has an order winner.
Answer:
b. 7.60 percent.
Explanation:
Dividend yield = expected return - dividend growth rate
- expected return = 13%
- dividend growth rate = 5.4%
dividend yield = 13% - 5.4% = 7.6%
Dividend yield is a financial metric that measures the rate of return that a stockholder receives every time a dividend is distributed. You can also calculate it by dividing dividends received by stock price.
Direct marketing tactic.
Direct marketing is a method used by companies that directly targets the potential customers they want to reach through things like direct mail, text advertisements, custom ads on social media, email marketing, and direct selling.
Answer:
d. 16% - buy
Explanation:
R = (D1 / P0) + g
Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11
Expected Return = R = ($2/$40) + 11%
R = 0.05 + 0.11
R = 0.16
R = 16%
Expected Return is higher than the required return of 12%. Hence, it should be bought (it is expected to give higher return than required)
