Answer:C. will help to create a more successful market system.
Explanation: Intellectual properties are creations of the mind,they are works of people's creative mindset. Intellectual properties can be protected through any of the four different classes of rights
(1) Copyright,(2) patents (3) trademarks (4) trade secrets.
Copyright is the exclusive right give to the creator or the originator of an intellectual property for him or her to continue to recreate for a specific period of time, it is renewable.
Patent is a right or authority given by Government to the creator of an intellectual property to prevent others from recreating the same invention over a period of time.
Trademarks are a type of intellectual property rights which represented by some signs signifying that it is produced under authority.
Trade secrets are certain undisclosed facts or procedures concerning the creation of a given invention,they are recognised by Government.
PUTTING STRICTER LAWS TO PROTECT INTELLECTUAL PROPERTIES RIGHTS will help to CUT DOWN THEFT, CORRUPTION AND HELP TO MAKE THE MARKET STRONGER AND BETTER.
Using the Gordon Growth Model (a.k.a. Dividend Discount Model), the intrinsic value of a stock can be calculated, exclusive of current market conditions. In this model, the value of the stock is equated to the present value of the stock's future dividends.
<span>Value of stock (P0) = D1 / (k - g)
</span>where
D1<span> = </span><span>expected annual </span>dividend<span> per share in the following year </span>
<span>k = the investor's discount rate or required </span>rate of return
g = the expected dividend growth rate
<u>From the problem:</u>
The value of stock is $10.80
D1 is $0.40
g is 0.08
k is unknown
Solution:
Rearranging the equation for Gordon Growth Model to solve for k:
k = (D1/P0) + g
Substituting the variables with the given values,
k = (0.40/10.80) + 0.08
k = 0.1170
In percent form, this is
0.1170 * 100% = 11.70%.
Thus, the total rate of return on the stock is 11.70%.
