Answer: Partnership selling
Explanation:
Partnership is a firm of business that occurs when two or more people pool their resources together on order to achieve a common goal.
Partnership selling focuses on the creation of a buying environment
that is based on the customer defined value. For partnership salespeople, they create a bridge between themselves and the customers which give them win-win solutions.
Answer:
13.26%
Explanation:
For computing the best estimate, first we have to determine the expected rate of return by using the CAPM model which is shown below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5.5% + 1.10 × 8%
= 5.5% + 8.8%
= 14.3%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
Now under the dividend growth model, the cost of equity would be
Price = Next year dividend ÷ (Required rate of return - growth rate)
where,
the next year dividend would be
= $2.20 + $2.20 × 5%
= $2.20 + 0.11
= $2.31
The other items rate would remain same
Now put these values to the above formula
So, the value would equal to
$32 = $2.31 ÷ (Cost of equity - 5%)
After solving this, the cost of equity would be 12.22%
Now the best estimated would be
= (14.3% + 12.2%) ÷ 2
= 13.26%
Answer:
c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
Explanation:
In the above scenario it will be a good financial decision to choose a loan with lower effective rate than the one with lower percentage rate.
Effective rate is defined as the real interest rate on a loan or the actual amount that is to be repaid annually on a loan. It gives a truer picture of cost of borrowing money.
Percentage rate is interest paid on a loan expressed as a percentage of the total amount collected. It usually includes various fees and charges collected by the lender. So it is not a true reflection of the cost of borrowing
Answer:
C
Explanation:
The correct option is C :price to increase and the profits of firms in the market to decrease
This can be explained by the fact that, since it always been mandatory to possess a license in order to work in a particular market. This certainly reduces the competition in the market and thus, the prices would increase; therefore, as the firms have to pay for licence thus would reduce the profits of firm.
