Answer:
Money is served three purposes- unit of account, store of value and medium of exchange
Explanation:
In this question, we are to identify the role money plays in each of the following parts of the story.
Money is used to measure the valueof good in money unit, so the values can be compared easily.
In the first case, Van is comparing between value of goods. the money serves as unit of account.
Money is used as medium of echange to avoid the difficulty arising out of goods to goods exchange.
In the second case, Van is exchanging $140 for the DVD, money is serving as medium of exchange.
Money also has store of value, it can be saved and exchanged for goods over time.
In third case, Van is saving money for future exchange, money is serving its store of value function.
Answer:
1. Year 1 expected value = $32.24
2. Required rate of return = 7.35%
Explanation:
1. For computing the stock price which is expected 1 year from now is shown below:
= Current Price × (1+rate)^number of years
= $31 × (1+0.04)^1
= $31 × 1.04
= $32.24
Hence, the expected 1 year value of stock price is $32.24
2. The required rate of return is computed by using an formula which is shown below:
= (Current Year dividend ÷ Current stock price)+ growth rate
where,
current year dividend is = D1
And, D1 = DO × (1+g)
where,
DO = previous dividend share
g = growth rate
So, $1 × (1+0.04)
= $1 × 1.04
= $1.04
Now apply these values to the above formula
So, required rate of return is equals to
= ($1.04 ÷ $31) + 0.04
= 7.35%
Hence, the required rate of return is 7.35%
Hi, you've asked an incomplete question. However, I provided some explanations on distribution channels.
<u>Explanation:</u>
Interestingly, the term distribution channel is one often used in businesses today to refer to the various routes or intermediaries their goods or services passes through before it gets to the end-user or buyer.
Today the popular distribution channels among businesses include:
- retailers,
- wholesalers,
- distributors,
- the Internet.
Among the various options, the internet has been attributed by some big businesses to be most instrumental in their distribution process.
