The answer will be An excess of production.
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Answer:
$109
$118.81
18.26%
Explanation:
Intrinsic value can be determined using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
dividend, growth rate and cost of equity are not given and they have to be calculated
growth rate = retention rate x ROE
Retention rate = 1 - payout ratio = 1 - 0.5 = 0.5 = 50%
0.5 x 18% = 9%
According to the capital asset price model: cost of equity = risk free + beta x (market rate of return - risk free rate of return)
9% + 2x (14% - 9%) = 19%
dividend = payout ratio x earnings per share
0.5 x $20 = $10
Intrinsic value = = $109
Stock price in a year
= 118.81
(dividend return + price return)
price return is the return on investment as a result of appreciation or depreciation of share price
Dividend return is the return on investment from dividend earned
price return = price at the end of the year - price at the beginning of the year
Apple's value proposition to customers is specifically the design of its devices, the ease of use of its products, and the aspirational qualities its products offer the user.
<h3>What is meant by value proposition?</h3>
A value proposition is a brief explanation of why a client might select your good or service. It conveys the most obvious advantage that clients get from doing business with you.
Examples of the Best Value Propositions:
- The Best Way to Get Around is Using Uber.
- The Experience Is the Product with the Apple iPhone.
- UnbounceA/B Testing Without Tech Pains:
- Slack: Work Productivity Boost with Less Work.
- Digit: Money Savings Without Having to Think About It
The four different categories of value are financial value, social value, psychological value, and functional value. Not all customers place the same value on different sources of value.
To know more about value proposition refer to: brainly.com/question/7594107
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Answer:
80%
Explanation:
For computing the return on investment first we have to need the following calculations
New contribution margin = Old contribution margin + increase in contribution margin
= $260,000 + $30,000
= $290,000
And,
Net Income = Contribution margin - Total direct fixed costs
= $290,000 - $90,000
= $200,000
ROI = Net income ÷ average operating assets
= $200,000 ÷ $250,000
= 80%
Because banks hold reserves in amounts that are less than the amounts of their deposit liabilities, and because the deposit liabilities are considered money in their own right, fractional-reserve banking permits the money supply to grow beyond the amount of the underlying base money.