Answer: Po = Do(1+g)/Ke-g
Po = $3.10(1-0.109)/0.13 - (-0.109)
Po = $3.10(0.891)/0.13+0.109
Po = $3.10(0.891)/0.239
Po = $11.56
Explanation: The current market price of the stock equals the current dividend paid multiplied by 1+g divided by the excess of cost of equity over growth rate. The growth rate is negative in this case, thus, the growth rate would be deducted from 1. Moreso, the growth rate will be added to cost of equity since it is negative. Thus, the amount that the investor will be willing to pay is $11.56.
Answer:
-0.20
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Cross Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 16 million - 14 million = 2 million
Average = (16 million + 14 million) / 2 = 15 million
2 / 15 = 0.133
midpoint change in price = change in price / average of both price
change in price = 1 - 2 = - 1
average of price =(2 + 1) / 2 = 1.5
-1/1.5 = -0.67
0.1333 / -0.67
Answer:
Informational appeals
Explanation:
Informational appeals are an effective way to show and explain your product or service to your potential customers. A company usually uses three types of informational appeal, or a mixture of the three:
- highlight your product's benefits or attributes
- make a product demonstration or comparison against its competitors
- use celebrity testimonials, or regular people testimonials (depends on the budget)
Enterprises or EPE was what was formed (sorry didn’t want to phrase it weird like that but you have to have 20 or more characters)