The Threat of New Entrants in the Five Forces Model

question 86

Multiple Choice

The threat of new entrants in the Five Forces Model is ______ when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.

• A) low
• B) high
• C) unchanged
• D) unaffected

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Definitions:

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have grown over a specific period.

Expected ROE

The anticipated return on equity, calculated based on expected future earnings divided by shareholders' equity.

Expected ROE

The projected return on equity, which measures a company's efficiency at generating profits from every unit of shareholder's equity.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.