Answer: 7.46%
Explanation:
The CAPITAL ASSET PRICING MODEL is a very useful tool for calculating a firm's Cost of Equity.
The Formula is,
Rc = Rrf + b(Rpm)
Where,
Rc is the Cost of Equity
Rpf is the Risk risk free rate
b is beta
Rpm is the risk premium
Plugging in the digits we have,
Rc = 0.0350 + 0.88(0.045)
= 0.0746
The firm's cost of equity from retained earnings based on the CAPM is therefore 7.46%
Brand repositioning is when a company changes their status in the marketplace. Like changes to the marketing mix including product, price, location, and promotion. Repositioning happens to fulfill consumer wants and needs
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Answer:
D.
Explanation:
The process by which members of an organization choose a specific course of action to respond to both problems and opportunities.
Characteristics:
-number of alternatives
-information available to the option
-timeframe relatively long
-uncertainty
Phases for decision making:
-acquiring and perceiving info or cues for the decision
-generating and selecting hypotheses or situation assessments
Answer: Exchange rate forecasting is important because exchange rate influence all aspects of business.
Explanation:
Exchange rate forecast is a method that is used to predict exchange rates by collecting all the relevant factors that may affect a currency. Exchange rate forecasting is vital because exchange rates influence all aspects of business.
The exchange rate plays a vital role for firms that import raw materials and export goods. A depreciation i.e a devaluation of the currency will make exports cheaper and therefore exporting firms will benefit. Every firm is interconnected in one way or the other, therefore exchange rate is vital.
Answer:
Considering selling the items and donating cash instead