Answer:
No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.
Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.
The answer is “insurance policies”
Answer:
- Sacred consumption
- Profane consumption
Explanation:
This differentiation is based on special religious events (e.g. religious holidays) that considered some goods as sacred, while profane had to do with everyday life.
Some modern marketing strategies try to build sacred brands. For example, Google has become our God of all knowledge and no one even dares to challenge that almost religious belief. Anyone can make their own coffee or buy coffee at any coffee shop, but Starbucks is different, it has built a sense of emotional connection with the public. It's not any coffee that we need or want.
Answer:
Option (D) is correct.
Explanation:
Imperfect information refers to a situation in which both the parties (i.e buyer and seller) have different information. For example; In a market of second hand car industry, the buyer have less information about the car as compared to the seller. In this type of industry, the seller have more information about the condition and quality of used car.
In our case, the seller of antique have more information about the product, so this will lead to give a disadvantage to a potential buyer of antique.
Answer:
$43.19
Explanation:
Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.
P0 = D1/(r-g)
P0 = Current price
D1 = Next year's dividend = $3.11
r = investors' required return = 11.4% or 0.114 as a decimal
g = dividend growth rate = 4.2% or 0.042 as a decimal
P0 = 3.11/(0.114 - 0.042)
P0 = $43.19
Therefore, this stock price is $43.19
