Answer:
$31,400
Explanation:
Ruby estimates that only 2% of its 2019 credit sales will be written off
Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts
Ruby Red has credit sales of $1,570,000.
Bad debt expense = Credit sales * 2% of its 2019 credit sales
Bad debt expense = $1,570,000 * 2/100
Bad debt expense = $1,570,000 * 0.02
Bad debt expense = $31,400
Answer: Affiliate marketing
Explanation: Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own efforts of marketing. Affiliate marketing is the process of earning a commission by promoting other people's (or company's) products. The scenario above illustrates affiliate marketing, because If customers click on a logo, visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner.
Answer and Explanation:
The formula to compute the required rate of return using the CAPM and constant growth model is as follows
Under CAPM
The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
Constant growth model = Dividend ÷ Price + Growth rate
For Estee lauder,
Under CAPM = 4% + 0.74 × (10% - 4%)
= 4% + 0.74 × 6%
= 4% + 4.44%
= 8.44%
Under the Constant growth model
= $1.70 ÷ $50 + 16.50%
= 19.90%
For Kimco realty,
Under CAPM = 4% + 1.51 × (10% - 4%)
= 4% + 1.51 × 6%
= 4% + 9.06%
= 13.06%
Under the Constant growth model
= $1.68 ÷ $82 + 11%
= 13.05%
For Estee lauder,
Under CAPM = 4% + 1.02× (10% - 4%)
= 4% + 1.02 × 6%
= 4% + 6.12%
= 10.12%
Under the Constant growth model
= $0.60 ÷ $10 + 13%
= 19.00%
