I have the same question if anyone can help please let me know
Answer:
The required rate of return is 7.20%
Explanation:
The price of a share that pays a particular dividend amount in perpetuity is given by the below formula:
price of share=dividend/required rate of return
price of share is $91.00 per share
dividend payable in perpetuity is $6.55
required rate of return is unknown
$91=$6.55/required rate of return
required rate of return =$6.55/$91
=7.20%
to confirm the required of return,I divided the by the required rate of return as shown below:
6.55/0.0.72=$90.97 .approximately $91
That is a way to validate the computed required rate of return
Resources are any assets that a firm can draw on when formulating and implementing a strategy.
Resource based view is strategy based model that considers an organization's resources as a key to sustainable competitive advantage. The supporters suggests that a firm should look inside the company to find the sources of competitive advantage, instead of looking at the external competitive environment.
According to the Resource based view there are two types of resources: Tangible assets and intangible assets. Tangible assets are physical things such as land, building, machinery, equipment etc. Organizations can easily acquire them in market, so they confer little advantage. Intangible are assets that have no physical presence, such as brand reputation, trademark, etc. They play a significant role in sustaining of a firm as its competitors can't acquire these internal assets.
To learn more about assets click here:
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<span>A. Medicare provides health care for older people, while Medicaid provides health care for people with low incomes.</span>
Answer:
$11,000
Explanation:
Data provided as per the requirement of net income for year 1 is here below:-
Provided consulting services = $50,000
Paid rent expense = $12,000
Paid employees salaries = $27,000
The computation of net income for Year 1 is shown below:-
Net income for Year 1 = Service revenue - Rent expense - Salary expenses
= $50,000 - $12,000 - $27,000
= $11,000
Therefore for computing the Net income for Year 1 we simply applied the above formula.
