The fact that they will check hbefore making large purchases. is B. comparison shopping.
<h3>What is comparison shopping?</h3>
It should be noted that comparison shopping simply means choosing among the available suppliers to determine the best one.
In this case, the company is using the information to choose the best option.
Learn more about shopping on:
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The elasticity price will drop lower
Answer:
Cost of equity = 10.5%
Explanation:
<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)
This model can be used to work out the cost of equity as follows:
Ke= Rf + β (Rm-Rf)
Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?
Ke = 6% + 1.0× (10.5 -6)% = 10.5%
Ke = 10.5%
Cost of equity = 10.5%
I think the answer to this question is C
Answer: A
Explanation: I took the test and they also in the reading thingy.
