Answer:
5.6%
Explanation:
Internal growth rate can be calculated as below:
Internal growth rate = (Return on asset x Retention Rate)/[1 - (Return on asset x Retention Rate)]
Retention rate = 1 - Payout ratio = 1 - 30% = 70%
Return on asset = Net income/Asset = 82,490/1,089,500 = 7.6%
Putting all the number together, we have:
Sustainable growth rate = (7.6% x 70%)/[1 - (7.6% x 70%)] = 5.6%
Answer:
Cost of equity = 19.1
%
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1
%
Cost of equity = required rate of return + flotation cost
= 15.1
% + 4% = 19.1
%
Cost of equity = 19.1
%
Customers whose demand has a higher degree of price elasticity will pay less.
<h3>How Does Price Discrimination Occur and types of Price Discrimination?</h3>
Price discrimination is a marketing tactic where sellers charge clients various prices for the same good or service depending on what they believe will win the customer over. A merchant that practices pure price discrimination will impose the highest price possible on each customer. The more typical types of price discrimination involve the vendor classifying clients into groups according to particular characteristics and charging each group a different price.
There are three types of price discrimination:
First-Degree Price Discrimination: when a company charges the highest price per unit of consumption.
Second-Degree Price Discrimination: when a business offers discounts for large orders or imposes various prices on customers depending on how much they eat.
Third-Degree Price Discrimination: when a business charges varied prices to various customer segments.
To know more about Price Discrimination visit:
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Her manager should provide incentives such as merit pay or sales <span>commissions.
Internal locus of control means that Caroline believes that her actions directly affect the consequences of those actions, which is why providing her with such incentives would have a great impact on Caroline and her work, and she would be even more productive.
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It wasn't fully announce that Sears is going out of business but rather, they are just going to close 150 of its branches this year 2017. This is according to Business insider. <span>Most of the stores will start liquidation sales on Jan. 5 and will go </span>out of business<span> in March and April. Hope this helps.</span>
