Answer: Required return = 15%
Explanation:
Current Price using the constant-growth DDM is;
Current Price = Expected dividend / ( Required return - growth rate)
This can therefore be used to calculate the required return.
Growth rate = Return on Equity * Retention ratio
= 15% * ( 1 - payout ratio )
= 15% * (1 - 40%)
= 15% * 60%
= 9%
Expected dividend = Earnings per share * Payout ratio
= 3 * 40%
= $1.20
Using the formula;
Current Price = Expected dividend / ( Required return - growth rate)
20 = 1.20 / (Required return - 9%)
20 * (Required return - 9%) = 1.20
Required return - 9% = 1.20 / 20
Required return = (1.20 / 20) + 9%
Required return = 15%
Answer:
b. Both the equilibrium wage and quantity decrease.
Explanation:
When a market is in equilibrium, quantity supplied equals quantity demanded.
When swimming pools adopt labour saving technology, the quantity of labour demanded falls. This leads to a decrease in equilibrium wage and quantity . When supply exceeds demand, wages fall and labour would leave the lifeguard industry due to decreased demand.
Check out the attached image for a graphical explanation
I hope my answer helps you.
Answer: True
Explanation:
This kind of order obligates the sale or liquidation of a subsidiary company, especially and it is especially forced by some governing authority.
Answer:
full spectrum of product offerings
Explanation:
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers.
