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2 years ago

The two-stage dividend growth model evaluates the current price of a stock based on the assumption a stock will:_____.

1 answer:

4 0

The two-stage dividend growth model assesses a stock's present price based on the presumption that it will increase in value at a different rate eternally after growing at a fixed rate for a set period of time.

The payout increases steadily in the first phase for a predetermined period of time. In the second, it is presumable that the dividend will increase at a different pace for the rest of the company's existence.

A mathematical technique called the dividend growth model allows investors to determine a realistic fair value for a company's stock based on its current dividend payout and projected dividend growth in the future.

Learn more about two-stage dividend growth model here.

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5. Name the three factors of production and two payment types in the circular flow model.

zhannawk [14.2K]

Hi sweetie! Hope i can help!

Answer:

Land, labor, and capital

Wishing you the best of luck,
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3 years ago

A store that has very limited inventory commonly uses what type of inventory method ?

faltersainse [42]

RETAIL INVENTORY METHOD SHOULD BE USED BY A STORE .

Explanation:

The retail inventory method is an accounting method used to estimate the value of a store's merchandise. The retail method provides the ending inventory balance for a store by measuring the cost of inventory relative to the price of the merchandise. Along with sales and inventory for a period, the retail inventory method uses the cost-to-retail ratio.

Periodic counts might be once every two months or every three weeks, depending on warehouse size and company needs. This will create better visibility than yearly or seasonal options but it also requires more time and manpower. Workers must ensure they are performing inventory consistently between each count.

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3 years ago

Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of th

posledela

Answer:

Option C.

Explanation:

From the scenario presented above, Golden is not in any way liable for the inability to supply the total quantity of the 6-ounce yogurt containers, therefore, Golden can choose to reject the delivery of the 8-ounce containers.

Also, Golden can give Food Packaging a reasonable amount of time to enable them replace the containers, of Golden is not in a hurry to begin production and packaging.

5 0

3 years ago

When the alternatives under consideration have only disbursements (service alternatives), the do-nothing alternative must be inc

Rom4ik [11]

Answer: False

Explanation:
When more than one alternative can be selected from those available, the alternatives are said to be mutually exclusive. In evaluating independent alternatives, each alternative is compared against the "Do Nothing" alternative.
For mutually exclusive alternatives, the do-nothing is a viable option when revenue alternatives are involved.

7 0

3 years ago

The Gable Inn is an all-equity firm with 16,000 shares outstanding at a value per share of $14.50. The firm is issuing $50,000 o

sukhopar [10]

Answer:

12,552 shares

Explanation:

Data provided:

Initial outstanding shares of the firm = 16,000 shares

Value of each share = $14.50

Debt issued = $50,000

Now,

the number of shares used for issuing for $50,000 debt

= Debt issued / value of each share

on substituting the respective values, we have

the number of shares used for issuing for $50,000 debt

= $50,000 / $14.50

= 3448.27 ≈ 3448 shares

Now,

The shares of stock that are outstanding once the debt is issued =

= Initial outstanding shares - shares used for issuing for $50,000 debt

= 16,000 - 3448

= 12,552 shares

4 0

3 years ago