One key advantage when considering brand extension strategies is that it can increase the customer base. Brand extension is a marketing strategy that involves the use of a well-known brand name to introduce a new product or service in a different market or product category.
Brand extension can also boost the word-of-mouth marketing, which is one of the most effective forms of marketing. Satisfied customers are more likely to share their positive experiences with friends and family, leading to increased awareness and interest in the brand extension. This can result in an increase in sales and revenue.
Another advantage of brand extension is that it can help to maintain or even increase the brand quality. If the new product or service lives up to the quality standards of the original brand, customers will associate the same quality with the brand extension, which can further enhance the brand’s reputation and value.
To know more about strategies visit:-
https://brainly.com/question/31930552
#SPJ11
the key elements of an organization are its structure, business processes, politics, culture, and people.
a. true
b. false
The statement "the key elements of an organization are its structure, business processes, politics, culture, and people" is true. The key elements of an organization are its structure, business processes, politics, culture, and people.Why are these elements important for an organization?Structure - The framework of tasks and responsibilities that describes the chain of command and decision-making processes for an organization's employees.Business processes - The processes and procedures that an organization follows to achieve its goals.Politics - The internal and external factors that influence decision-making and power relationships within an organization.Culture - The shared values, attitudes, and behaviors that shape an organization's identity.People - The employees who work for the organization and contribute to its success.
To know more about elements, visit:
https://brainly.com/question/31950312
#SPJ11
World Gourmet Coffee Company (WGCC) is a distributor and processor of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale.
World Gourmet Coffee Company (WGCC) is a worldwide distributor and processor of different blends of coffee. This business purchases coffee beans from all over the world and after that, roasts, blends, and packages them for resale.
WGCC is involved in both direct and indirect distribution. Direct distribution includes the business's website, social media pages, and retail stores, while indirect distribution involves wholesalers, hotels, coffee shops, and supermarkets, among others.WGCC is one of the few companies that focus on both quality and consistency when it comes to coffee production. Quality coffee is the result of careful sourcing, roasting, and blending.
The company sources coffee beans from the best coffee-producing regions in the world, roasts them using traditional methods, and then blends them to create distinct and unique flavors.In terms of the coffee business, marketing is critical since there is a lot of competition. WGCC has put in place numerous marketing strategies that have been successful.
These approaches include advertising, sales promotion, public relations, personal selling, and direct marketing. The company utilizes print, radio, and TV ads to reach a larger audience.To stay up with the most recent coffee trends, WGCC has implemented technological advancements.
They employ cutting-edge software and hardware to monitor the supply chain, handle orders, manage inventory, and execute customer service. This allows them to produce consistent and high-quality coffee, as well as reduce costs and boost productivity.
In conclusion, World Gourmet Coffee Company is a renowned coffee distributor and processor that aims to provide high-quality coffee to its customers. It is a company that has invested in advanced technologies and marketing strategies to ensure customer satisfaction.
For more question on distributor
https://brainly.com/question/28606412
#SPJ8
St. Jones Corporation's bonds make an annual coupon interest payment of 7.75%. The bonds have a par value of $1,000, a current price of $1,150, and mature in 15 years. What is the yield to maturity on these bonds?
The yield to maturity of the bonds is 6.23%.
Yield to maturity (YTM) is the approximate rate of return anticipated on a bond if it is held until it matures. This indicates the internal rate of return of the investment in the bond if it is kept until maturity, taking into account all interest payments and the difference between the price paid for the bond and the repayment of par value.
In the problem, it is provided that,St. Jones Corporation's bonds make an annual coupon interest payment of 7.75%. The bonds have a par value of $1,000, a current price of $1,150, and mature in 15 years.
The formula to find the yield to maturity of the bond is given by:
YTM = [(I + (F-P)/n) / (F+P)/2] × 100
Where,
I = Annual interest payment
F = Par value
P = Market price of bond
n = Years to maturity
Putting the given values in the formula, we get:
YTM = [(77.5 + (1000-1150)/15) / (1000+1150)/2] × 100
YTM = [(77.5 - 10)/1075] × 100
YTM = 6.23%
Therefore, the yield to maturity of the bonds is 6.23%.
To learn more about Yield to maturity (YTM): https://brainly.com/question/457082
#SPJ11
Suppose the following game is played infinite times in the future. Time discount is 0.65. What should be the value of x so that the equilibrium strategy is (Cooperate, Cooperate)? Player 2 Player 1 Cooperate Defect Cooperate (x,x) (12,2) Defect (2, 12) (5,5)
The value of x should be 5 in order for the equilibrium strategy to be (Cooperate, Cooperate).
In order to determine the equilibrium strategy, we need to find the best response for each player given the payoff matrix and the time discount factor. The time discount factor of 0.65 indicates that future payoffs are less valuable than immediate payoffs.
Player 1's best response is to Cooperate if the expected payoff from cooperating is greater than the expected payoff from defecting. Comparing the payoffs, we see that Player 1 receives 12 when Player 2 cooperates and 5 when Player 2 defects. Therefore, Player 1's best response is to Cooperate regardless of Player 2's strategy.
Similarly, Player 2's best response is to Cooperate if the expected payoff from cooperating is greater than the expected payoff from defecting. Comparing the payoffs, we see that Player 2 receives x when Player 1 cooperates and 5 when Player 1 defects. To make Player 2 indifferent between the two options, we set x = 5.
By setting x = 5, the equilibrium strategy becomes (Cooperate, Cooperate), where both players choose to cooperate in every round of the game.
To achieve an equilibrium strategy of (Cooperate, Cooperate), the value of x should be 5. This ensures that both players have a dominant strategy of cooperating in an infinite game played in the future, taking into account the time discount factor.
To know more about equilibrium strategy visit:
https://brainly.com/question/27184551
#SPJ11
Discuss the nontraditional barriers to entry identified in the chapter. Why is it important that entrepreneurial firms utilize one or more of these forms of barriers to entry?
Nontraditional Barriers to Entry and Their Importance for Entrepreneurial Firms
Nontraditional barriers to entry, as identified in the chapter, play a crucial role in the competitive landscape and success of Entrepreneurial Firms These barriers, which go beyond the traditional ones like economies of scale or capital requirements, provide unique advantages that can help entrepreneurial firms establish and maintain a competitive edge. One of the nontraditional barriers to entry is technological innovation. By leveraging cutting-edge technologies and developing proprietary systems, entrepreneurial firms can create a technological advantage that is difficult for competitors to replicate. This allows them to differentiate their products or services, attract customers, and establish a strong market position.
Another nontraditional barrier to entry is brand equity. Building a strong and recognized brand can enhance customer loyalty and trust, making it challenging for new entrants to gain market share. Entrepreneurial firms that invest in building a reputable brand can benefit from customer preference and a competitive advantage that is not easily replicated. Utilizing one or more of these nontraditional barriers to entry is important for entrepreneurial firms for several reasons. Firstly, it helps them differentiate themselves in crowded markets, enabling them to stand out and attract customers. Secondly, it creates a level of protection against new entrants, as these barriers can be difficult and time-consuming for competitors to overcome. Finally, it contributes to the long-term sustainability and growth of entrepreneurial firms, as they can leverage these barriers to maintain a competitive advantage and capture market share.
Learn more about Entrepreneurial firms
brainly.com/question/30100224
here: #SPJ11
105 minutes remaining Ø 29 OF 37 QUESTIONS REMAINING Question 34 1 Point One of the managers explained, "All the sections' performances are benchmarked against each other". Specify the managerial function that the manager is conducting in this statement. [Explanation is not required] Use the editor to format your answer 1 Point Question 35 Hessa's position has been redesigned using the Job Characteristics Approach. As a result of the redesigning, she commented "I am experiencing a higher level of responsibility for work outcomes". Specify the Job Characteristic / Dimension' that has been fulfilled in Hessa's case. [Explanation not required]
Question 34In the given statement, "All the sections' performances are benchmarked against each other," the manager is conducting a controlling function. Question 35In Hessa's case, her position has been redesigned using the Job Characteristics Approach.
Controlling function includes a set of activities to ensure that performance conforms to plans, that plans are being implemented efficiently and that rules and policies are being followed.
Question 35In Hessa's case, her position has been redesigned using the Job Characteristics Approach. The job characteristics approach comprises five job dimensions: skill variety, task identity, task significance, autonomy, and feedback.
In Hessa's case, the job characteristic/dimension that has been fulfilled is autonomy, which is the degree to which the job allows an individual to make decisions that influence the outcome of their work.
Because of the redesign, she is experiencing a higher level of responsibility for work outcomes, indicating that she has more control over her job and the decisions she makes related to it. Hessa's position has become more self-directed, and she is experiencing a greater degree of autonomy.
To know more about redesigned refer here:
https://brainly.com/question/13104616#
#SPJ11
Assume the zero-coupon yields on default-free securities are as summarized in the following table: 3 years 4 years Maturity Zero-Coupon YTMn 1 year 4.00% 2 years 4.40% 5 years 5.00% 4.70% 4.90% Consid
The Zero-coupon yields on default-free securities given are as follows: 3-year maturity bond has a yield of 4.00%. 4-year maturity bond has a yield of 4.40%.
5-year maturity bond has a yield of 5.00%, 4.70%, and 4.90% for the one-year, two-year, and four-year maturities, respectively. The term structure of interest rates gives the yields of bonds of different maturities with no default risk. It is an essential factor to consider while analyzing the overall economic situation and changes in the interest rates. From the given data, the zero-coupon yield curve is upward sloping, indicating that bonds with longer maturities have higher yields. The zero-coupon yield curve can also provide information on inflation and market expectations. The market's expectation of interest rates is higher in the future as yields increase with an increase in the maturity of the bond. The term structure of interest rates is useful to investors who plan to buy bonds with different maturities. They can use the yield curve to decide which bonds to buy.
In conclusion, the zero-coupon yield curve shows the yields of bonds with different maturities with no default risk. It provides information on market expectations of future interest rates and inflation. The upward sloping curve shows that yields increase with an increase in the maturity of the bond. Investors use the yield curve to decide which bonds to buy.
To know more about Zero-coupon yields visit:
brainly.com/question/18722710
#SPJ11
Glenmark has a debt equity ratio of 0.15 and its WACC is 12 47% with a tax rate of 20%. Calculate its cost of equity if the pre tax cost of debt is 7%
Glenmark's cost of equity is 18.38%. Debt equity ratio The debt equity ratio of a company is a financial metric that represents its financial leverage, or the degree to which it is dependent on borrowed funds. The formula for calculating the debt equity ratio is as follows.
Debt-equity ratio = Total liabilities / Total shareholder equity Glenmark's debt equity ratio is 0.15.Cost of equity. The cost of equity is the rate of return that a company's shareholders require in order to invest in the company. The following formula can be used to calculate it. Cost of equity = Risk-free rate + Beta (Market return - Risk-free rate)where β represents the systematic risk of a company, or how its stock price changes in response to market fluctuations. It is calculated by regression analysis on historical price data. The cost of equity can also be calculated using the capital asset pricing model (CAPM), which is as follows. Cost of equity = Risk-free rate + Beta (Market return - Risk-free rate)where RF is the risk-free rate of return, β is the systematic risk, and Rm is the market rate of return (or expected return on the market). In this case, we will use the CAPM to calculate Glenmark's cost of equity, given that the pre-tax cost of debt is 7%.
Assuming a tax rate of 20%, we can calculate the after-tax cost of debt as follows. After-tax cost of debt = Pre-tax cost of debt * (1 - Tax rate)= 7% * (1 - 0.20) = 5.6%We can then use this value, along with the other given inputs, to calculate the cost of equity as follows. Cost of equity = Risk-free rate + Beta (Market return - Risk-free rate)= 5.6% + Beta (12.47% - 5.6%)= 5.6% + Beta (6.87%)We still need to calculate β. However, we are not given the necessary information to do so. Therefore, we will have to make an assumption about its value. Assuming a β of 1.0 (the market average), we can calculate the cost of equity as follows. Cost of equity = 5.6% + 1.0 (6.87%)= 5.6% + 6.87%= 12.47%Therefore, if we assume a β of 1.0, Glenmark's cost of equity is 12.47%.However, assuming a β of 1.0 may not be appropriate for all companies. Some companies may have a higher or lower systematic risk, which would affect their cost of equity. For example, if Glenmark has a higher systematic risk, its cost of equity would be higher. If it has a lower systematic risk, its cost of equity would be lower.
To know more about debt equity visit:
https://brainly.com/question/28391877
#SPJ11
Market failure describes a situation in which the market itself ______________________ in a way that balances social costs and benefits. A. remains outside the transaction B. incurs the costs outside the production process C. fails to allocate resources efficiently D. avoids externalities
Market failure describes a situation in which the market itself fails to allocate resources efficiently in a way that balances social costs and benefits. Therefore, the correct option is C.
fails to allocate resources efficiently.What is market failure?Market failure occurs when the allocation of goods and services by a free market is not effective. Market failures can occur for a variety of reasons, including externalities and the existence of public goods. When market failure occurs, the free market is unable to allocate resources efficiently. Market failure can be corrected by a variety of policy interventions, including regulations and taxes, subsidies, or public ownership. There are a few types of market failure, including positive externalities, negative externalities, and asymmetric information.Positive externalities occur when the benefits of a good or service exceed the private benefits. Negative externalities occur when the costs of a good or service exceed the private costs. Asymmetric information occurs when the buyer and seller of a good or service have different information about the good or service's quality.
to know more about social costs vsit:
https://brainly.in/question/41312465?referrer=searchResults
#SPJ11
Market failure describes a situation in which the market itself C. fails to allocate resources efficiently in a way that balances social costs and benefits.
Why does market failure occur?Market failure occurs when the market mechanism driven by supply and demand forces, fails to efficiently allocate resources in a way that balances social costs and benefits. In a perfectly functioning market, the price mechanism guides the allocation of resources, ensuring that goods and services are produced and distributed based on consumer preferences and the efficient use of resources.
But market failures can arise due to various factors such as externalities (spillover effects on third parties), information asymmetry, monopolies, public goods and imperfect competition. These failures can lead to inefficiencies, inequities and suboptimal outcomes where the market does not achieve the socially optimal allocation of resources.
Read more about Market failure
brainly.com/question/18958169
#SPJ4
Face Value Coupon Rate Cash Flow Nper Market Value YTM $ 1,000.00 7% $ 1,025.00 $70 10 años
The bond has a face value of $1,000 and a coupon rate of 7%. It will mature in 10 years and is currently trading at a market value of $1,025. The yield to maturity (YTM) is the return an investor can expect if they hold the bond until maturity.
The face value of a bond represents the amount that will be paid to the bondholder at maturity, which in this case is $1,000. The coupon rate of 7% indicates the annual interest payment the bondholder will receive based on the face value, amounting to $70 per year. The bond is set to mature in 10 years, meaning that the bondholder will receive the face value of $1,000 at the end of the 10-year period.
Currently, the bond is trading in the market at a value of $1,025. The market value may differ from the face value due to various factors, such as changes in interest rates, credit rating of the issuer, and market demand.
The yield to maturity (YTM) is the rate of return an investor would earn if they hold the bond until it matures, taking into account the bond's current market value, coupon payments, and the face value received at maturity. It represents the total return on investment over the bond's holding period, including both the coupon payments and any potential capital gain or loss from the market price. In this case, the YTM would be calculated based on the bond's current market value of $1,025, the coupon payments of $70 per year, and the final face value of $1,000 received at maturity.
Learn more about payment here:
https://brainly.com/question/30884652
#SPJ11
One implication of the CAPM is:
a. Investors should spend time exploring many potential sources of risk for an individual company.
b. Investors who spend time exploring many potential sources of risk for an individual company are wasting their time.
c. It is only the correlation of a project’s returns with the returns on the company’s stock (a portfolio of all of the company’s projects or divisions) that matters.
d. None of the above.
The correct answer is c. It is only the correlation of a project’s returns with the returns on the company’s stock (a portfolio of all of the company’s projects or divisions) that matters.
The CAPM model states that the expected return of an asset is equal to the risk-free rate plus a risk premium that is proportional to the asset's beta. Beta is a measure of the asset's volatility relative to the market.
The CAPM model implies that investors should only focus on the systematic risk of an asset, which is the risk that cannot be diversified away. The unsystematic risk of an asset, which is the risk that can be diversified away, does not affect the asset's expected return.
This means that investors who spend time exploring many potential sources of risk for an individual company are wasting their time, because the only risk that matters is the company's beta.
For example, an investor who is considering investing in a new project by a company should only focus on the project's correlation with the company's stock. The project's specific risks, such as the risk of technological failure or the risk of regulatory changes, are irrelevant to the project's expected return.
To learn more about CAPM here brainly.com/question/10593001
#SPJ11
Suppose Autodesk stock has a beta of 2.10, whereas Costco stock has a beta of 0.74. If the risk-free interest rate is 4.5% and the expected return of the market portfolio is 12.5%.
What is the expected return of a portfolio that consists of 70% Autodesk stock and 30% Costco stock, according to the CAPM?
The expected return of a portfolio that consists of 70% Autodesk stock and 30% Costco stock, according to the CAPM, interest rate is approximately 12.94%.
This calculation takes into account the risk-free interest rate (4.5%), the expected return of the market portfolio (12.5%), and the betas of the individual stocks (2.10 for Autodesk and 0.74 for Costco). By weighting the expected returns of each stock according to their respective portfolio weights, the overall expected return of the portfolio can be determined. The expected return of a portfolio consisting of 70% Autodesk stock and 30% Costco stock, according to the CAPM, is approximately 12.94%. This calculation takes into account the risk-free interest rate (4.5%), the expected return of the market portfolio (12.5%), and the betas of the individual stocks (2.10 for Autodesk and 0.74 for Costco). The expected return of the portfolio, based on the CAPM, is 12.94%. This means that investors can anticipate an average annual return of approximately 12.94% from a portfolio composed of 70% Autodesk stock and 30% Costco stock. The CAPM factors in the risk-free interest rate, market portfolio return, and the individual stock betas to estimate the expected return. This information is valuable for investors as it helps in assessing the potential profitability and risk associated with the portfolio.
Learn more about interest rate here : brainly.com/question/28272078
#SPJ11
In 2021, a basketball player signed a contract reported to be worth $78.2 million. The contract was to be paid as $11.2 million in 2021, $12.1 million in 2022, $13.6 million in 2023, $13.7 million in 2024, $13.7 million in 2025, and $13.9 million in 2026. If the appropriate interest rate is 9 percent, what kind of deal did the player dunk? Assume all payments are paid at the end of the year. Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g.. 1,234,567.89.
Present value
The present value of the contract is $60.86 million, indicating that the player did not make a favorable deal.
The contract signed by the basketball player can be analyzed as a series of future cash flows. To determine the present value of these cash flows, we need to discount them at the appropriate interest rate of 9 percent.
By discounting each payment year by year and summing up the present values, we can determine the total present value of the contract. If this present value is higher than $78.2 million, then the player made a good deal; if it is lower, it would be considered a bad deal.
Based on the given information, the present values of the payments are as follows:
[tex]PV(2021) = $11.2 million / (1 + 0.09)^1 = $10.27 million[/tex]
[tex]PV(2022) = $12.1 million / (1 + 0.09)^2 = $10.22 million[/tex]
[tex]PV(2023) = $13.6 million / (1 + 0.09)^3 = $10.38 million[/tex]
[tex]PV(2024) = $13.7 million / (1 + 0.09)^4 = $10.02 million[/tex]
[tex]PV(2025) = $13.7 million / (1 + 0.09)^5 = $9.67 million[/tex]
[tex]PV(2026) = $13.9 million / (1 + 0.09)^6 = $9.32 million[/tex]
Summing up these present values, we get a total present value:
PV = $10.27 million + $10.22 million + $10.38 million + $10.02 million + $9.67 million + $9.32 million
= $60.86 million.
Since this value is lower than the reported $78.2 million, it suggests that the player did not make a good deal.
To learn more about contract follow the link:
https://brainly.com/question/32254040
#SPJ4
We are evaluating a project that costs $980,000, has a life of fourteen years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 101,000 units per year. Price per unit is $36, variable cost per unit is $25, and fixed costs are $987,840 per year. The tax rate is 22 percent, and we require a return of 18 percent on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 12 percent.
a. Calculate the best-case NPV.
b. Calculate the worst-case NPV.
a. The best case NPV is $1,235,478.47. b. The worst-case NPV is -$326,688.61.
a. Best-case NPV: Net Present Value (NPV) of a project is the difference between the present value of cash inflows and the present value of cash outflows of a project. Therefore, the formula for NPV is as follows:
NPV = ∑_(t=1)^n (C_t)/(1+r)^t − C_0
Where, C_t= cash inflows at time , tC_0= Initial cash outflow (investment) at t=0, r= required rate of return, n= life of the project. In the best-case scenario, we assume the projections are accurate to within +12% of the values.
Therefore, the best-case scenario can be calculated as follows:
Best-case sales= 101,000 × 1.12 = 113,120 units/year
Best-case price per unit= $36 × 1.12 = $40.32/unit
Best-case variable cost per unit= $25 × 0.88 = $22/unit
Best-case fixed cost per year= $987,840 × 0.88 = $868,531.20/year
Revenue= Price × Quantity= $40.32 × 113,120= $4,557,638.4
Variable cost= $22 × 113,120= $2,486,640
Fixed cost= $868,531.2
Depreciation per year= Initial cost/life of project= $980,000/14= $70,000
Taxable income= Revenue − Variable cost − Fixed cost − Depreciation= $4,557,638.4 − $2,486,640 − $868,531.2 − $70,000= $1,132,467.2Tax= 0.22 × $1,132,467.2= $249,142.984
Net cash flow= Revenue − Variable cost − Fixed cost − Tax= $4,557,638.4 − $2,486,640 − $868,531.2 − $249,142.984= $953,324.216NPV= ∑_(t=1)^n (Net cash flow_t)/(1+r)^t − C_0= ∑_(t=1)^14 ($953,324.216)/(1+0.18)^t − $980,000= $1,235,478.47
Therefore, the best-case NPV is $1,235,478.47.
b. Worst-case NPV: In the worst-case scenario, we assume the projections are accurate to within -12% of the given values. Therefore, the worst-case scenario can be calculated as follows:
Worst-case sales= 101,000 × 0.88 = 88,880 units/year
Worst-case price per unit= $36 × 0.88 = $31.68/unit
Worst-case variable cost per unit= $25 × 1.12 = $28/unit
Worst-case fixed cost per year= $987,840 × 1.12 = $1,106,836.8/year
Revenue= Price × Quantity= $31.68 × 88,880= $2,812,070.4
Variable cost= $28 × 88,880= $2,490,240
Fixed cost= $1,106,836.8
Depreciation per year= Initial cost/life of project= $980,000/14= $70,000
Taxable income= Revenue − Variable cost − Fixed cost − Depreciation= $2,812,070.4 − $2,490,240 − $1,106,836.8 − $70,000= $145,993.60Tax= 0.22 × $145,993.60= $32,118.592
Net cash flow= Revenue − Variable cost − Fixed cost − Tax= $2,812,070.4 − $2,490,240 − $1,106,836.8 − $32,118.592= $182,874.192
NPV= ∑_(t=1)^n (Net cash flow_t)/(1+r)^t − C_0= ∑_(t=1)^14 ($182,874.192)/(1+0.18)^t − $980,000= -$326,688.61
Therefore, the worst-case NPV is -$326,688.61.
Learn more about NPV here: https://brainly.com/question/31385035
#SPJ11
which of the following is correct in reference to the objective of financial accounting. group of answer choices the purpose of the financial statements is to report the company's prediction of future success. the purpose of the financial statements is to provide useful information to external decision makers. financial statements are provided to internal decision makers to predict future stock prices. the primary purpose of the financial statements is to provide strategic information about a business.
The purpose of the financial statements is to provide useful information to external decision makers. Hence, the correct option is:The purpose of the financial statements is to provide useful information to external decision makers.
Financial accounting is concerned with the recording of transactions or the activities of business entities in terms of money. It includes keeping a record of all transactions made by a company and the preparation of financial statements, which provide information about the financial position, performance, and cash flow of a company to various stakeholders like investors, creditors, government agencies, etc.The primary objective of financial accounting is to provide useful financial information to external decision-makers. The users of financial accounting information include investors, creditors, government agencies, customers, and other external parties who need to make decisions about the company based on its financial position, performance, and cash flow. Hence, the financial statements are prepared to provide useful information to external users who need to make decisions about the company.
The financial accounting system has an objective that needs to be achieved. Financial accounting is the method of recording financial transactions and preparing financial reports that show a business entity's performance and financial position. The financial accounting system's primary purpose is to provide useful financial information to external decision-makers, such as investors, creditors, government agencies, customers, and other external users, who need to make decisions about the company. The financial statements are prepared to provide useful information to external users who need to make decisions about the company. The users of financial accounting information include investors, creditors, government agencies, customers, and other external parties who need to make decisions about the company based on its financial position, performance, and cash flow.In conclusion, the primary objective of financial accounting is to provide useful financial information to external decision-makers. The purpose of financial statements is to report the financial position, performance, and cash flow of a company to external users. The financial accounting system's primary objective is to provide useful information to external decision-makers, such as investors, creditors, government agencies, customers, and other external users, who need to make decisions about the company based on its financial position, performance, and cash flow.
To know more about external decision makers visit :-
https://brainly.com/question/28456024
#SPJ11
Between transformation, renewal, process improvement, and experiment; which type of IT investment do you think has the most impact that would affect the entire organization? Why? Provide citations if needed
Transformational IT investments have the most impact on the entire organization as they fundamentally change operations and deliver significant improvements. Research by Brynjolfsson and McAfee (2014) and Melville et al. (2004) supports the positive outcomes of such investments.
Among the four types of IT investments mentioned (transformation, renewal, process improvement, and experiment), transformational IT investments are likely to have the most significant impact on the entire organization.
Transformational IT investments involve the adoption of new technologies or systems that fundamentally change the way the organization operates and delivers value.
Transformational IT investments have the potential to bring about substantial organizational changes, such as streamlining operations, improving efficiency, enhancing customer experience, and enabling innovation.
These investments often involve major shifts in business models, processes, and organizational structures, leading to significant improvements in overall performance and competitive advantage.
According to a study by Brynjolfsson and McAfee (2014), organizations that made significant IT investments and underwent digital transformation experienced higher productivity, profitability, and market value compared to their competitors.
They found that transformational IT investments were associated with increased revenue growth, reduced costs, and improved customer satisfaction.
Additionally, a research paper by Melville, Kraemer, and Gurbaxani (2004) highlighted that transformational IT investments have a long-term strategic impact by enabling organizational agility, flexibility, and responsiveness to changing market conditions.
While all types of IT investments can bring benefits, transformational investments stand out as they have the potential to reshape the entire organization and drive sustainable competitive advantage. However, the specific impact and effectiveness of IT investments may vary depending on the organization's context, industry, and strategic objectives.
Citations:
Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. W. W. Norton & Company.
Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28(2), 283-322.
Learn more about investments:
https://brainly.com/question/29547577
#SPJ11
The Category Development Index (CDI) for ginger-flavored soft drinks in Lansing DMA is 85. The Brand Development Index for Vernors (a Michigan-based ginger soft drink brand) is 121. Perform a geographic quadrant analysis and place the brand in one of the four quadrants. What does this placement mean for your brand? Attack competitors Opportunity for the brand to expand No opportunity at all because the brand is not doing well Maintain the sales in the market and expand the category
The given Category Development Index (CDI) for ginger-flavored soft drinks in Lansing DMA is 85 and the Brand Development Index for Vernors (a Michigan-based ginger soft drink brand) is 121.
To perform a geographic quadrant analysis, we will plot CDI and BDI on the X and Y axis, respectively. The below diagram shows the geographic quadrant analysis of the Vernors brand in Lansing DMA. [tex]\Large \frac{\text{BDI}}{100} \times \text{CDI} [/tex ] is used to calculate the resulting percentages for each product.
This formula is utilized in the geographic quadrant analysis. The product is placed in one of the four quadrants based on its performance based on the resulting percentages of the formula. The resulting percentages can range from 0 to 100%, and a score above 100% is considered excellent, while a score below 100% is considered poor.
To know more about Index visit:
https://brainly.com/question/32235606
#SPJ11
george bought and investment that will pay him $10 million in 15
years. what is the present value of george’s investment if it earns
12% compounded quarterly?
The present value of George's investment, given an interest rate of 12% compounded quarterly, is approximately $4,524,886.70.
To calculate the present value of George's investment, we can use the formula for present value of a future cash flow:
PV = CF / (1 + r/n)^(n*t)
Where:
PV = Present Value
CF = Cash Flow
r = Interest rate
n = Number of compounding periods per year
t = Number of years
Given:
CF = $10 million
r = 12% or 0.12
n = 4 (compounded quarterly)
t = 15 years
Substituting the values into the formula:
PV = $10,000,000 / (1 + 0.12/4)^(4*15)
PV = $10,000,000 / (1 + 0.03)^(60)
Calculating the value inside the parentheses:
(1 + 0.03)^(60) ≈ 2.20843
PV = $10,000,000 / 2.20843
PV ≈ $4,524,886.70
Therefore, the present value of George's investment, given an interest rate of 12% compounded quarterly, is approximately $4,524,886.70.
learn more about "investment":- https://brainly.com/question/29547577
#SPJ11
Non negativity constraint:
a. A vertex of the feasible region.
b. Indicates that all decision variables must take on values equal to or greater than zero.
c. The linear function (equal sign) representing cost, profit, or some other quantity to be maximized of minimized subject to the constraints.
d. The solution to the system of linear inequalities. That is, the set of all points that satisfy all the constraints. Only points in the feasible region can be used.
Which of the following is a definition for variable costs:
a. Costs that contain a fixed and variable element
b. Costs that remain the same whatever the level of output
c. Costs that vary directly with the number of units produced
d. Costs that will remain fixed as output increases until the activity reaches a level where the costs have to increase sharply
Non-negativity constraint indicates that all decision variables must take on values equal to or greater than zero. The feasible region is the solution to the system of linear inequalities. Only points in the feasible region can be used. Thus, option c is correct.
A vertex of the feasible region is where at least two constraints intersect.Variable costs are costs that vary directly with the number of units produced.
The non-negativity constraint requires that the decision variables must take on values that are equal to or greater than zero. This means that the solution must not include negative values for the decision variables. In graphical terms, the feasible region is the solution to the system of linear inequalities. Only points in the feasible region can be used.A vertex of the feasible region is where at least two constraints intersect.
Each constraint is represented by a straight line, and the feasible region is the set of points that satisfies all of the constraints simultaneously. Thus, the vertices are the points where at least two of the lines intersect, and the feasible region is the convex hull of these vertices.
The vertices are important because they give the optimal solutions. Therefore, the vertices of the feasible region are the points where the linear function reaches its maximum or minimum value.
Variable costs are costs that vary directly with the number of units produced. The total cost of producing a product includes both fixed costs and variable costs. Fixed costs are the costs that remain fixed or constant whatever the level of output, while variable costs are those that vary directly with the number of units produced.
Examples of variable costs include labor costs, materials costs, and electricity costs. The more units produced, the higher the variable costs will be. On the other hand, fixed costs will remain constant irrespective of the level of output produced. Hence, option C, costs that vary directly with the number of units produced, is the definition for variable costs.
Know more about the Non-negativity constraint
https://brainly.com/question/13732112
#SPJ11
the auditors expect a population deviation rate of billing errors of eight percent, and have established a tolerable rate of five percent. the sampling approach most likely to be used is
The sampling approach that is most likely to be used is the attributes sampling, as the auditors expect a population deviation rate of billing errors of 8 percent and have established a tolerable rate of 5 percent.
What is attributes sampling?
The attributes sampling is a statistical approach used by auditors to check a sample of items from a large set or population to determine whether specific control procedures are functioning appropriately. The sample is tested for specific characteristics, and any items that do not meet the control procedure's requirements are noted as deviations from the intended process. Attributes sampling is most useful when dealing with dichotomous data or pass/fail data that can be measured on a yes-no basis.Attributive sampling, on the other hand, is used to evaluate the quality of a product or service by checking samples of the product or service instead of examining the entire product or service. It determines the proportion of units in a population that meet a specific criterion.Therefore, for the given scenario, the auditors expect a population deviation rate of billing errors of 8 percent, and have established a tolerable rate of 5 percent. The sampling approach most likely to be used is the attributes sampling.
Learn more about the sampling approach:
brainly.com/question/30431894
#SPJ11
TRUE / FALSE. 26 00:53:22 Parties can discharge their duty by being ready, willing and able to perform. This is known as tender.
The statement "Parties can discharge their duty by being ready, willing and able to perform. This is known as tender" is True. The term tender is used to describe the process of offering to perform a contract. When one party is ready, willing, and able to perform their part of a contract, they can discharge their duty to the other party by tendering performance.
Tender is a legal concept that describes the process of making an offer to perform a contract. It can also refer to the act of presenting something, such as a payment or a document, as a sign of good faith or willingness to fulfill a contract. To discharge a duty under a contract, a party must be ready, willing, and able to perform their part of the agreement. This means that they have the necessary resources, skills, and abilities to fulfill their obligations.
When a party tenders performance, they are essentially saying "I am ready, willing, and able to perform as required by the contract." This offer to perform creates a legal obligation for the other party to either accept the offer or reject it. If the other party accepts the offer, a binding contract is formed. If they reject it, the party who tendered performance is released from their obligation to perform.
In conclusion, the statement "Parties can discharge their duty by being ready, willing, and able to perform. This is known as tender" is true. Tender is the process of offering to perform a contract, and when one party tenders performance, they are ready, willing, and able to fulfill their obligations under the agreement.
Know more about the Tender click here:
https://brainly.com/question/31134912
#SPJ11
Prove that is best for a producer to be in cournot than in competence. Then prove that is best to be in collusion than in cournot.
Collusion>Cournot>Competence
Cournot and Competence are the two primary models of market competition.
A Cournot producer or oligopolist specifies a set quantity of production that is best for them, considering the effect of rivals' production on the market price. The firm's rivals also do the same, resulting in a production equilibrium that is suboptimal for all parties.In a Cournot equilibrium, the producers compete by deciding how much of a good to produce and sell. Cournot's main goal is to increase profits by setting production levels that account for the impact of the other company's production level. Competence is a model of perfect competition where producers compete by setting prices. Competence is most efficient when there are many suppliers and buyers, there is no collusion, and there are no barriers to entry.
The primary disadvantage of competence is that it results in low-profit margins and can lead to market instability.In a Cournot equilibrium, producers must determine the optimal quantity to produce and compete in terms of quantities produced, while in a competence equilibrium, they must set optimal prices and compete in terms of prices. Producers choose collusion over Cournot because it results in greater profits. Collusion entails producers agreeing to coordinate production levels and pricing to ensure maximum profit maximization. Collusion, as opposed to Cournot, allows producers to achieve a monopoly outcome and maximize profits. Therefore, it is best to be in collusion than Cournot. Hence, the order of preference is Collusion>Cournot>Competence.
To know more about Cournot visit:
https://brainly.com/question/31628379
#SPJ11
In a Cournot competition, firms set their output levels simultaneously, taking into account the anticipated response of their competitors. This strategic interaction leads to a more favorable outcome for producers compared to perfect competition.
By setting their output levels strategically, firms can avoid excessive price competition and maintain higher prices, resulting in higher profits.
Moving to collusion, where firms cooperate and act as a single entity, the outcome is even more advantageous. In a collusive agreement, firms can coordinate their output levels to maximize joint profits. By reducing output and maintaining higher prices, collusion allows producers to extract more value from the market and enjoy even higher profits than in a Cournot competition.
Therefore, the hierarchy holds: collusion provides the highest level of profitability, followed by Cournot competition, and lastly, perfect competition, where individual firms lack the strategic advantage and face intense price competition.
Learn more about competence here
https://brainly.com/question/31628379
#SPJ4
6. The Romer (1990) Model in Continuous Time plus Extensions Consider the following version of the Romer (1990) model that looks at its overall structure in continuous time. The following equations fully describe the economy: Y(t) = C(t) + I(t) Y(t)= F[K(t), A(t)L(t)] = K (t)" [A(t) Ly(t)]¹-a I(t) = S(t) K = -8K (t) + 1(t) S(t) = SKY(t) À = 8L₁(t) A(t) Y defines income, C defines consumption, I investment, S savings, K the capital stock, Ly labour used in the production of aggregate output, A the state of technology (stock of ideas) and L, labour used in the production of new ideas. Labour in the economy is defined by L = Ly + LA, and it is assumed to grow at the constant rate n, while the fraction of the labour force that engages in R&D is constant; namely SR = 4. Regarding the exogenously given parameters, 8 € (0,1) is the rate of capital depreciation, SK € (0,1) the saving rate, a € (0,1) is the capital elasticity of output; and > 0,0 and 2 € (0,1). The previous equations describe a closed economy with no government. (a) Provide an interpretation of the equation that describes the production of new ideas; namely, A = 8LA. What does each parameter try to capture? Describe the implications of = 0, <0 and > 0 for the accumulation of knowledge (ideas).(b) What does the model imply for long-run economic growth? Derive and interpret the condition that should hold in order for the steady-state growth rate of output per worker to be constant, assuming < 1. Is it possible for the model to predict perpetual growth? Derive the condition needed and interpret your result. ( (c) Let 2 = 1 and p = 0. Explain the effect of a permanent increase in the share of the population engaged in research on the growth rate and the state of technology. Draw a graph with the growth rate of technology to illustrate your answer. Does this change have level or growth effects on output per worker? (d) Define Schumpeter's concept of creative destruction, and present the probability of innovation in the Schumpeterian model by Aghion and Howitt (1992). )
A = 8LA represents new idea production. Parameters capture research productivity and labor effectiveness. Implications depend on >0, =0, or <0. Also, Constant growth in output per worker requires n + 8SR = 1. The model predicts sustained but not perpetual growth.
(a) In the Romer (1990) model, A = 8LA represents the production of new ideas. Parameters capture the productivity of researchers (8) and the effectiveness of the labor force engaged in R&D (L). When >0, knowledge accumulation and technological progress are faster. When =0, there is no relationship between R&D and idea generation, leading to no progress. When <0, additional R&D effort yields diminishing returns, resulting in slower knowledge accumulation.
(b) The model implies that steady-state growth in output per worker is driven by technological progress. For constant growth, the condition n + 8SR = 1 must hold, where n is the growth rate of the labor force and SR is the fraction engaged in R&D. Perpetual growth is not predicted as long as this condition is satisfied.
(c) Setting 2 = 1 and p = 0 implies a permanent increase in the share of the population engaged in research. This leads to higher growth rates of technology and output per worker. The effect is depicted by an upward shift in the growth rate of technology over time. The change has both level and growth effects on output per worker: an initial level effect due to increased research effort and a subsequent growth effect due to sustained technological progress.
(d) Schumpeter's concept of creative destruction refers to replacing existing products, firms, and industries by introducing new innovations. In the Aghion and Howitt (1992) model, the probability of innovation is represented by a function that depends on various factors, such as research effort and technological opportunities.
To learn more about “production” refer to the https://brainly.com/question/16755022
#SPJ11
An increase in the price of crude oil would cause a shift in
______________________ (supply or demand) CHOOSE ONE
An increase in the price of crude oil would cause a shift in supply.
When the price of crude oil rises, it affects the cost of production for many industries that rely on oil as an input. As a result, producers are likely to face higher costs and may reduce the quantity of goods or services they are willing to supply at each price level. This leads to a decrease in supply and a leftward shift of the supply curve. It's important to note that an increase in the price of crude oil would not directly cause a shift in demand. The demand curve represents the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase. While an increase in oil prices might indirectly affect the demand for goods and services that heavily rely on oil (e.g., transportation), the primary impact is on the supply side.
To know more about supply curve, click here https://brainly.com/question/30740064
#SPJ11
An investor is analysing 3 investment options (Project A, B and C). The payback period of Project A is 3.2 years, while Project 8 is 2.8 years and Project C is 4.2 years. The investor has a maximum acceptable payback period of 3 years. Based on the following data which of the following statements is incorrect? O All three projects have acceptable payback periods. O Project B is the superior option based on the payback period. O Project A is better than project C. If the maximum acceptable payback period was increased to 5 years all projects would be acceptable.
Based on the given data, the statement that is incorrect is "Project B is the superior option based on the payback period." The correct option is a.
The payback period is the time required for an investment to generate enough cash flows to recover the initial investment. In this scenario, Project A has a payback period of 3.2 years, Project B has a payback period of 2.8 years, and Project C has a payback period of 4.2 years. The investor's maximum acceptable payback period is 3 years.
The first statement, "All three projects have acceptable payback periods," is correct because none of the projects exceed the investor's maximum acceptable payback period of 3 years.
The second statement, "Project B is the superior option based on the payback period," is incorrect. Although Project B has the shortest payback period among the three options, it does not meet the investor's maximum acceptable payback period criterion of 3 years.
The third statement, "Project A is better than Project C," is correct because Project A has a shorter payback period than Project C.
If the maximum acceptable payback period was increased to 5 years, all three projects would be acceptable because their respective payback periods are less than 5 years. However, it's important to consider other factors such as the profitability, risk, and long-term viability of the projects before making a final investment decision.
Learn more about profitability here:
https://brainly.com/question/14969763
#SPJ11
You want to determine the number of containers to use for incoming parts for a Kanban system to be installed next month. The process will have a usage rate of 2400 pieces per day. Tour organization runs an 12 hour shift each day. Because the process is new, the manager has assigned an inefficiency factor of .40. Each container holds 80 pieces and takes an average of 3 hours to complete a cycle. How many containers should be used 7 (Round up to the next vhole number) Type your answer...
The Answer is 55. The usage rate is 2400 pieces per day. The organization runs a 12-hour shift each day. The inefficiency factor is 0.4.Each container holds 80 pieces. Each container takes an average of 3 hours to complete a cycle.
To determine the number of containers to use for incoming parts for a Kanban system to be installed next month, we have to follow the steps below:
Step 1: Calculate the number of pieces used during a 12-hour shift. Using the usage rate of 2400 pieces per day:2400 pieces/day ÷ 24 hours/day = 100 pieces/hour Then, the number of pieces used during a 12-hour shift: 100 pieces/hour × 12 hours = 1200 pieces
Step 2: Calculate the number of pieces that will be produced with the inefficiency factor. Since the inefficiency factor is 0.4, the number of pieces produced will be:1200 pieces ÷ (1 - 0.4) = 2000 pieces
Step 3: Calculate the time for a container to be consumed. The time for a container to be consumed is:80 pieces ÷ 2000 pieces/hour = 0.04 hours or 2.4 minutes
Step 4: Calculate the number of containers that should be used. The number of containers that should be used is given by: Safety stock + (Lead time × usage rate)/number of pieces per container where:
Safety stock = 1 (to ensure that there will always be containers available) Lead time = 3 hours Usage rate = 2400 pieces/day × (1 - 0.4) = 2400 pieces/day × 0.6 = 1440 pieces/day Number of pieces per container = 80 pieces. Therefore: Number of containers = 1 + (3 hours × 1440 pieces/day)/(80 pieces/container)= 1 + 54 = 55 containers. Therefore, the number of containers that should be used is 55 (rounded up to the next whole number)
To learn more about the organization.
brainly.com/question/31680300
#SPJ11
Helen Morgan opens a brokerage account and purchases 500 shares of Telkom stock at a price of R37.50 per share. The initial margin is 40%. A year later, the price of Telkom stock has fallen to R30 per share, what is the rate of return received by the investor? (Commisions and interest are ignored)
The rate of return received by the investor is approximately -67.94%. This negative return indicates a loss on the investment due to the decrease in the stock price.
initial margin = 40%
Price per share = 30
number of shares = 500
Initial Investment = (Number of shares × Price per share) / Initial Margin
= (500 × 37.50) / 0.4
= 18,750 / 0.4
= 46,875
Final Value = Number of shares × Price per share
= 500 × 30
= 15,000
Rate of Return = ((Final Value - Initial Investment) / Initial Investment) × 100
= ((15,000 - 46,875) / 46,875) × 100
= (-31,875 / 46,875) × 100
= -67.94%
Learn more about rate of return at:
brainly.com/question/17164328
#SPJ4
which of the following best illustrates the difference between gdp and gnp? group of answer choices gdp measures the goods consumed by the citizens of a country, while gnp measures output exported to other countries. gdp measures the output produced by the citizens within a country, while gnp measures output produced by noncitizens within a country. gdp measures the output produced by the citizens of a country, while gnp measures output produced within the borders of a country. gdp measures the output produced within the borders of a country, while gnp measures output produced by the citizens of a country.
The following best illustrates the difference between GDP and GNP: GDP measures the output produced within the borders of a country, while GNP measures output produced by the citizens of a country.
GDP and GNP are economic indicators that help in measuring the economic output of a country. The Gross Domestic Product (GDP) is a measure of the economic output of a country that includes goods and services produced within the borders of a country. In contrast, the Gross National Product (GNP) is a measure of the economic output of a country that includes all goods and services produced by the country's citizens, whether they are produced within the country's borders or outside of them.The given options are as follows:gdp measures the goods consumed by the citizens of a country, while gnp measures output exported to other countries.gdp measures the output produced by the citizens within a country, while gnp measures output produced by noncitizens within a country.gdp measures the output produced by the citizens of a country, while gnp measures output produced within the borders of a country.gdp measures the output produced with
in the borders of a country, while gnp measures output produced by the citizens of a country.Therefore, the option that best illustrates the difference between GDP and GNP is that GDP measures the output produced within the borders of a country, while GNP measures output produced by the citizens of a country.
to know more about GDP, visit
https://brainly.com/question/1383956
#SPJ11
Consider the shipping container (the large box that stacks on cargo ships and attaches to trucks). If all containers are the same size and design, then the container can pass seamlessly between ships, trains, trucks, and cranes along the way. Today, the standard dimensions are 8 feet wide, 8.5 feet tall, and 40 feet long. Let’s see how this standard dimension illustrates the meaning of "Nash equilibrium."
a. Suppose an inventor created a new shipping container that was slightly cheaper to make, as well as stronger, but it had to be 41 feet long.
Keeping the idea of standardization in mind, would this inventor be successful? Why or why not?
1-The inventor would be successful; shipping firms, attracted to the lower cost, would switch over their equipment and buy the new containers.
2-The inventor would be successful; other shipping companies may not buy the containers, but the inventor can successfully enter the intermodal shipping market using equipment specially designed for the new, lower-cost containers.
3-The inventor would not be successful; incumbent manufacturers of the old 40-foot containers would lower prices to keep out the competitor.
4-The inventor would not be successful; the minor cost savings and strength boost would not justify the switching costs associated with refitting ships, trains, trucks, and cranes to work with 41-foot containers.
The correct answer is: 4-The inventor would not be successful; the minor cost savings and strength boost would not justify the switching costs associated with refitting ships, trains, trucks, and cranes to work with 41-foot containers.
The shipping industry relies heavily on standardized container dimensions to ensure seamless transportation and handling across different modes of transportation. The current standard container size is 40 feet long, and the infrastructure, including ships, trains, trucks, and cranes, is designed to accommodate this specific size. Any deviation from the standard size would require significant investments and modifications to the existing infrastructure, leading to substantial switching costs. Although the new container may offer cost savings and increased strength, these advantages would likely be outweighed by the expenses associated with refitting and adapting the entire transportation system to accommodate the new container size. Shipping companies and other stakeholders in the industry would be reluctant to bear these costs, considering the relatively minor benefits of the new container.Therefore, the inventor would not be successful in introducing the 41-foot container into the market due to the practical challenges and high switching costs associated with reconfiguring the transportation infrastructure.
To know more about deviation, click here https://brainly.com/question/32247292
#SPJ11
Boehm Inc. just paid $1.50 per share dividend and the dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock is 13%. What would you expect to sell the stock at in 2 years?
We have given the dividend per share for Boehm Inc. as $1.50. And, the dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock is 13%. The expected price at which we would sell the stock in 2 years is $23.23
First, we can calculate the expected dividend at the end of the first year:
Expected dividend next year = $1.50 × (1 + 6%) = $1.59
Now, we can calculate the expected price of the stock at the end of the first year using the constant growth model:
P1 = (D1 × (1 + g)) / (r - g)
Where:P1 = the expected price of the stock at the end of the first year
D1 = the expected dividend at the end of the first year
r = the required rate of return
g = the growth rate
P1 = ($1.59 × (1 + 6%)) / (13% - 6%)= $20.58
Now, we can calculate the expected price of the stock at the end of the second year using the same formula as above but with the expected dividend and the expected price of the stock at the end of the first year:
P2 = (D2 × (1 + g)) / (r - g)
Where:P2 = the expected price of the stock at the end of the second year
D2 = the expected dividend at the end of the second year
r = the required rate of return
g = the growth rateP2 = ($1.59 × (1 + 6%)^2) / (13% - 6%)= $23.23
Therefore, we can expect to sell the stock at $23.23 in 2 years.
To know more about dividend visit:
brainly.com/question/28290196
#SPJ11
