Answer:
The correct answer is option D.
Explanation:
Competitive advantage refers to the situation when a firm can provide better value to their customers or provide the same product at a lower cost. In other words, the company is able to outperform its competitors.
Economies of scale can arise because of several factors such as
- Economies of scale
- Geographical location
- Internal systems
Competitive advantage gives a firm the ability to produce more efficiently than its rival and thus the firm has greater profit than its rival.
A cost that remains unchanged in total despite variations in the volume of activity within a relevant range is a fixed cost. The fixed cost is a type of cost behavior which remains unchanged regardless of the unit or activity changes in a production process<span>. There are four types of cost behavior, which are the fixed cost, the variable cost, the mixed cost, and the step cost.</span>
Ion really get your question
Answer:
D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.
Explanation:
So, we evaluate each option.
a. We discount the dividends by the required rate of return. So incorrect.
b. The dividend yield is annual dividend per share divided by stick price per share. the 5% is the growth in dividend and not the actual dividend itself. So, incorrect.
c. The constant growth is appropriate for companies whose dividend patterns are stable. Startups have multiple stage growths and this option becomes incorrect as constant growth is not applicable.
d. A zero growth stock is one where dividend remains the same. So when there is no growth in dividend, the constant growth model becomes inapplicable. So, the statement is correct.
So, here we have our correct statement and all others are incorrect.
Answer:
No, they would not.
Explanation:
Pebbles are too easy to come by. They would not be very valuable as everyone could easily get very many.