Answer:
Risk-free rate (Rf) = 8%
Return on market portfolio (Rm) = 15%
Beta (β) = 1.2
Ke = Rf + β(Rm - Rf)
Ke = 8 + 1.2(15 - 8)
Ke = 8 + 1.2(7)
Ke = 8 + 8.4
Ke = 16.40%
Earnings per share (EPS) = $10
Current dividend paid (Do) = 40% x $10 = $4
Retention rate (b) = &6/$10 x 100 = 60% = 0.6
ROE (r) = 20% = 0.2
Growth rate (g) = b x r
= 0.6 x 0.2
= 0.12 = 12%
Current market price (Po)
= Do<u>(1 + g) </u>
Ke - g
= $4<u>(1 + 0.12)</u>
0.1640 - 0.12
= $4<u>(1.12)</u>
0.044
= $101.82
Explanation:
First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).
Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.
I think it is d. none are correct
Explanation:
- It encourages people community to post their news
- The news can be posted for a group or to a general public too
- The group or the general public can comment on the news
- The news which is interesting based on the reviews will be given the top priority
Example:
Reddit - A large site with huge number of user
Digg - This is also quite popular and it has different categories of news where the user can view news based on his/her interest.
Answer:
C. He can hire a new employee for a temporary replacement
Explanation:
because what if the other states are going to shut down the trade industry and you just shut down your shoe factory the whole city is going to be shoe less so i would say c and wait to find a worthy successor for his position in the shoe manufacturing business.
Answer: Advocate
Explanation: In simple words, advocate level is the topmost stage in the loyalty ladder. In this stage, the customer gets used to for the brand and along with repurchasing it he or she also works as a promotional toll for the brand.
In the given case, Maria has been repurchasing the products from the firm and is also praising the brand online. Hence we can conclude that she is on the advocate rung.