Answer:
By Serving As A Tool For A Distributing Goods And Services.
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
A market
share objective is the reason they encountered losses. Market share often pursues by companies when industry sales are relatively
flat or declining. Although increased market share is a primary goal of some
firms, others see it as a means to other ends: increasing sales and profits.
Answer:
Demand for plastic sprinklers for year 1 Year 2 Year 3 and Year 4 is 98 (33 + 14 + 51) , 111 , 133, 136.
Explanation:
The Production line capacity requirement for the next four years will be equal to the demand for the next four years. The production line needs to meet the annual demand for the plastic sprinklers. The production line is extended and economies of scale is introduced with helps the company save additional cost of extension in the production line.
Answer:
<u>A) $4.67</u>
Explanation:
In a perfectly competitive market, marginal revenue always is equal to price. Also, the price is not determined by the firms, it is given by the market because producers doesn´t have any power of decision in this matter.
Due to that, the price is constant, independent the quantity sold.
