The characteristic that all forms of direct marketing have in common is that they:
are carried out by agents or brokers.
involve face-to-face or teleconferencing sessions with the customer.
include some type of activity that directly links manufacturers to the ultimate consumer.
make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.
Answer: $22.22
Explanation:
We can use the dividend discount model to solve for this.
The formula is,
P = D1 / r - g
Where,
D1 = the next dividend
r = the expected return
g = the growth rate.
We do not have the expected return but we can calculate for it using the old stock price and growth rate. Making it x we have,
28.5 = 0.5 / x - 0.075
28.5 (x - 0.075) = 0.5
x = 0.5 / 28.5 + 0.075
x = 0.09254385964
x = 9.25 %
Now that we have the expected return we can calculate the new stock price with the new growth rate,
P = 0.5 / 9.25% - 7%
P = 22.2222222222
P = $22.22
The new stock price is $22.22
There are many impact that could happen when doing this, some good some bad. The bad ones being that you could possibly lose credits that you have already earned, and you have to adjust to new atmosphere and new people. The good impact of this sis that you may be able to learn in a new way that could possibly be easier to understand for you.
