Answer:
D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.
Explanation:
So, we evaluate each option.
a. We discount the dividends by the required rate of return. So incorrect.
b. The dividend yield is annual dividend per share divided by stick price per share. the 5% is the growth in dividend and not the actual dividend itself. So, incorrect.
c. The constant growth is appropriate for companies whose dividend patterns are stable. Startups have multiple stage growths and this option becomes incorrect as constant growth is not applicable.
d. A zero growth stock is one where dividend remains the same. So when there is no growth in dividend, the constant growth model becomes inapplicable. So, the statement is correct.
So, here we have our correct statement and all others are incorrect.
In the question we are given 105 km/hr
One mile = 1.60934 km
105/1.60934 = 65.244.
Thus, 105 kilometer = 65.24 mile.
The correct option is D.
Answer:
$207000 is the sales revenue for the year.
Explanation:
The given situation is:
Sales Revenue 100%
Cost Of Goods sold <u> 60% </u>
Profit Margin 40%
Now we neither have sales revenue figure nor the profit margin figures but we can calculate cost of goods sold from the following formula:
Cost Of Goods Sold = Opening Inventory + Purchases - Closing Inventory
By putting values we have:
Cost Of Goods Sold = $54,000 + $109,800 - $39,600
Cost Of Goods Sold = $124,200
Now cost of goods sold is 60% which means if we want to go at 100% we will divide with the percentage at which we are standing (60%) and multiply with the percentage which we want to calculate (Sales is 100%).
Sales revenue = Cost of goods sold * 100% / 60%
Sales revenue = $124200 * 100% / 60% = $207,000
Answer:
Option C) Decrease in Total Assets , and No Effect on Equity
Explanation:
Telephone bill it's a Current Liability , if you decide to pay it as soon as you receive it you have to use Cash which is part of your Current Asset, so the impact it's a decreased in your Current Assets through the Cash component.
This movement has no impact in the Sotckholder Equity.
