Answer: 13.88%
Explanation:
The cost of equity can be used along with the variables given to calculate the price of a share using the Gordon Growth model so this can be remodeled to solve for the cost of equity.
Price of stock = (Dividend * (1 + growth rate)) / (cost of equity - growth rate)
35 = (2.96 * (1 + 5%)) / (cost of equity - 5%)
35 = 3.108 / (cost of equity - 5%)
(cost of equity - 5%) * 35 = 3.108
Cost of equity - 5% = 3.108 / 35
Cost of Equity = (3.108 / 35) + 5%
= 13.88%
Test marketing is a marketing method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis before a wider release. Consumers exposed to the product or campaign may or may not be aware that they are part of a test group.
In the long run, when the government pursues an accommodative policy, the output in the economy will be $80 billion and the price level will be $90 billion.
Due to the increase in the prices of oil and consequently the increase in the cost of producing goods and services in the economy, the short-run aggregate supply curve shifts to the left. As a result, in the short run, the output is established at a level lower than the natural level of output.
Now, the government pursues an accommodative policy in anticipation of the fall in output.
As a result, the AD curve shifts to the right, and the long-run equilibrium is restored at the natural level of output but at a higher price level than before.
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I think it's A; pure risk
The correct answer is related diversification. related diversification refers to the company which purchases another company, which is related to what the purchasing company is already doing. In this situation, Verizon is develops and deploys low-altitude telecommunication systems, wherein Verizon is the purchasing company wherein it purchases another company that plays the same role as Verizon already does.
When a business owner of a coffee shop decides to purchase a a coffee cup manufacturer, he or she is using the strategy of Vertical Integration. Vertical Integration refers to the strategy wherein a company or group of people purchases a customer or a supplier for his or her own company use.