Phychographic segmentation
Answer:
c) workers in the country with unlimited unemployment benefits have less incentive to search diligently for work.
Explanation:
In the country with unlimited unemployment benefits, many unemployed people will stop looking for a job because they can live off the benefits.
They will only look for a job if the wage they would earn is likely to be higher than the amount of money they get from benefits. In other words, they will only do so if the marginal cost of looking for a job (losing the benefits) is less than the marginal benefit (the wage earned in the found job).
This event causes a higher equilibrium unemployment rate because it increases a specific type of unemployment that prevents the economy from reaching full-employment (it increases frictional unemployment).
Answer:
The cost of equity= 11.21%
Explanation:
VL=Value UnLevered + Debt*Tax Rate =EBIT*(1-Tax Rate)/Unlevered Cost of Capital +Tax *Debt
=1900*(1-34%)/10.3%+34%*4000
=13534.76
Value of equity = $13,534.76 – 4,000 =9434.757
Cost of Equity = Cost of Unlevered Equity +(Debt/Equity)*(1-Tax Rate)*(Cost of Unlevered Equity-Cost of Debt)
=10.30%+(4000/9434.757)*(1-34%)*(10.3%-7%)
=11.21%
Answer:
(a) 78.96
(b) 82.99
(c) 5.10
Explanation:
The current stock price can be calculated as follows
= 3.76 × 21
= 78.96
The target stock price in one year can be calculated as follows
= 3.76(1+5.1%)×21
= 3.76×(1+0.051)×21
= 3.76×1.051×21
= 82.99
The implied return on company's stock over one year can be calculated as follows
= 82.99-78.96/78.96
= 4.03/78.96
= 0.0510× 100
= 5.10
