Answer:
The description of the given question is explained below in the explanation portion.
Explanation:
Risk 1: <u>New customer</u>
- Our advantage comes from developing strong client relationships, that also typically lead to other initiatives with this client.
Risk 2: <u>Poor cost estimate</u>
- It's always research linked towards the building of educational business process, therefore a complicated project consisting of several components including students, instructional personnel, and clients.
Risk 3: <u>Difficult to maintain</u>
- Throughout the long term, disproportionately numerous people will be able to use that same technology in some of these circumstances.
Answer:
beta of portfolio is 1.55
Explanation:
First we calculate the Equity Risk Premium, given as:
Equity Risk Premium = Market Return - Risk Free Rate
= 11 - 6 = 5%
Given that;
Risk Free Rate = 6%
Return on Stock = 13.75%
Second, we calculate the Return on Stock
Return on stock = Risk-free rate + Equity risk premium * Beta for stock
Answer:
B
Explanation:
The dividend growth model is a method of determining the value of a company using its dividend.
Forms of the dividend growth model include
- The Gordon dividend growth model
- The 2-stage dividend growth model
- The 3-stage dividend growth model
- The H-model
The advantages of the dividend growth model
disadvantages of the dividend growth model
- It is not appropriate when the investor wants to take a control perspective
- It cannot be used for a firm that doesn't pay dividends
Answer: The answer is elastic demand because elasticity of demand is > than 1
Explanation:Elasticity of demand is the degree of responsiveness of demand to slight change in price of goods. It is calculated as ED=% change in Qd/% change in price
Since Qd is 3 and 5
Qo-Q1/Qo*100%
3 - 5/3*100%
= -2/3*100%
= -200/3
=-66.6%(ignore the minus sign)
Po-P1/Po*100%
8-6/8*100
=2/8*100%
= 25%
ED= 66.6/25
=2.6
6-8/6*100%
=-2/6*100%
=-200/6
=-33.3%
ED= 66.6/33.3
=2
Since the elasticity of demand is greater than 2. Therefore elasticity of demand is elastic