Answer:
b. external
Explanation:
When an economical event affects something in an indirect way, it is called an <em>external change</em>. It is expected for the economic recession to affect economic factors of course. However, it is imminent that it affects every-day life among people too. Economic factors directly influence life and habits of the U.S. consumer, as it is common for most economic changes.
<span>They can file the bankruptcy code under chapter 11.
</span>This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11<span>.
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Answer: A. She believes the company has become riskier, and therefore increases her required rate of return for the stock.
Explanation:
The formula for the Constant dividend growth model of valuing stock is:
<em>= Next dividend / (Required return - growth rate)</em>
From the formula above, one can tell that if the required return is higher, it would result in a lower value for stock because it would divide the numerator more.
If the analyst believes that the company is riskier and increases the required return, the value would therefore reduce if other measures are kept constant.
