Answer:
(A) 6%
(B) 20
Explanation:
The market capitalization rate for Admiral motors is 8%
= 8/100
= 0.08
The expected ROE is 10%
= 10/100
= 0.1
The expected EPS is $5
The Plowback ratio is 60%
= 60/100
= 0.6
(A) The growth rate can be calculated as follows
= Plowback ratio × ROE
= 0.6 × 0.1
= 0.06×100
= 6%
Hence the growth rate is 6%
(B) The P/E ratio can be calculated as follows
= 1-0.6/0.08-0.06
= 0.4/0.02
= 20
Hence the P/E ratio is 20
Answer:
The answer is C. Government licensing allows media companies to have a near monopoly.
Explanation:
Not anyone can start a media company just because they want to. There are barriers to entry such as the large capital expenditure, staffing, and the government licensing.
Among these, the major contributor towards the marketto become an oligopoly is the government licensing process.
There are many things to consider and do during the licensing process and it is highly time consuming as well. Moreover, the costs involved is significantly high as well.
Answer:
0.5
Explanation:
Marginal propensity to consume is the proportion of the increase in disposable income spent on consumption.
Marginal propensity to consume = change in consumption/ increase in disposable income
$500 / $1000 = 0.5
I hope my answer helps you
Answer:
B. motivating current employees
Explanation:
The internal business processes perspective of balanced scorecard were used to create new products, services, and processes. It addresses providing service and support to the customer after the sale. It asks for delivering existing products and services to best meet the needs of customers. But it does not address motivating current employees since balanced scorecard is concerned with innovation in products and services.
