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Shkiper50 [21]
3 years ago
14

What is market saturation?

Business
1 answer:
Leona [35]3 years ago
3 0
In economics, market saturation is a situation in which a product has become diffused (distributed) within a market;the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.
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Answer:

The expected rate of return is 14.29%.

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The re-arranged equation of DDM for Expected Rate of Return is given below:

Expected Rate = (Next Year Dividend / Current Stock Price) + Growth Rate

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All the other values are given in the question. Simply put those values in the equation:

⇒ Expected Rate of Return = (2.18 /28) + .065 = .1429 = 14.29%.

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