Answer:
e) $37.05
Explanation:
Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.
So we discount the year 3 dividend using the dividend growth model formula
P = D (1+g)/r-g
r- rate of return, g = growth rate
Present value of the future dividends:
PV of Year 1 = 1.55(1.015)m × 1.12^(-1)
= 1.4047
PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)
= 1.27
PV of Year 3 (this will be done in two steps)
Step 1; PV (in yr 2) of year 3 dividend
= (1.55)(1.015)^2×(1.08)/(0.12-0.08)
=43.114
Step 2 : PV (in yr 2) of year 3 dividend
=43.114 × (1.12^(-2))
= 34.37
Best estimate of stock = 1.40 + 1.27 +34.37
= $37.05
Note
To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0
The above is referred as Comparative statements. A comparative statement is an archive that contrasts a specific budgetary proclamation and earlier period articulations or with the same monetary report produced by another organization. Examiner and business supervisors utilize the wage explanation, monetary record and income proclamation for relative purposes.
Although upselling and cross-selling are effective with existing customers, cross-selling is more likely than upselling to<u> A. improve </u><u>customer retention rate</u>.
<h3>What is customer retention?</h3>
Customer retention refers to the ability of an organization or marketer to achieve customer loyalty over time.
When a customer is retained, there is always increased revenue from repeat purchases.
Customer retention increases brand loyalty.
Question Completion with Answer Options:
A. improve customer retention rate.
B. satisfy customer needs
C. provide the information necessary to diagnose reasons for customer defection.
D. increase customer profitability.
Thus, although upselling and cross-selling are effective with existing customers, cross-selling is more likely than upselling to<u> A. improve </u><u>customer retention rate</u>.
Learn more about customer retention at brainly.com/question/11621168
#SPJ12
Answer:
Will increase
Explanation:
Substitutes are the goods which have high elastic demand or positive cross elasticity of demand. An increase in price substantially affects the demand for a substitute good. For example, if tea and coffee are substitutes, an increase in the price of coffee will increase the demand for tea and the overall surplus in the team market.
Answer & Explanation:
"Pays as agreed" is a term you want to see on your credit report. It simply means you have been repaying a debt according to the agreement between you and the lender or creditor.
