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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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A family spends $40,000 on living expenses. With an annual inflation rate of 6 percent, they can expect to spend approximately _

il63 [147K]

Answer: $42,400

Explanation:

The family currently spends $40,000 on living expenses.

Inflation is expected to be 6% and as Inflation is used to refer to the general rise in prices, this means that the family will be spending 6% more in one year.

They will therefore be spending;

= 40,000 * (1 + 6%)

= $42,400

7 0

3 years ago

Depreciation Methods A delivery truck costing $22,000 is expected to have a $2,000 salvage value at the end of its useful life o

Artist 52 [7]

Answer:

a. $5,000

b. $5,500

c. $6,000

Explanation:

The computation of the depreciation expense for the second year is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($22,000 - $2,000) ÷ (4 years)

= ($20,000) ÷ (4 years)

= $5,000

In this method, the depreciation is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $22,000, so the depreciation is $11,000 after applying the 50% depreciation rate

And, in year 2, the $11,000 × 50% = $5,500

(c) Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)

= ($22,000 - $2,000) ÷ ($100,000 miles)

= ($20,000) ÷ ($100,000 miles)

= $0.2 per miles

Now for the second year, it would be

= Production units in second year × depreciation per miles

= 30,000 miles × $0.2

= $6,000

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3 years ago

Construction workers manufacturing workers and farmers have what in common?

Marina86 [1]

Answer: There career pathways

Explanation:

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3 years ago

On January 1, 2017, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $672,000 conside

bogdanovich [222]

Answer:

Question a:

The non-controlling interest of Rockne´s 2018 net income is $111,000.- calculated by taking 30% of Rockne´s net income of $370,000.-

Question B:

There are 3 entries required to eliminate te sale of goods form rochne to doone.

The first entry eliminates the sales recorded by rockne against te inventory or cost of goods sold by recorded by doone. To consider, the 60% of the purchases went trhough cost of good sol d and 40% of the purchases remain in inventory until the following year. Here is the engru:

Debit/sales/$530

Credit/COGS/ ($318) 60%

Credit inventory ($212) 40%

The next entry has to do with the amount of inventory that remained from the last intercompany transaction. This is caclulated usin 40% of 2017 sales, which were $430. So:

Debit inventory $172

Credit Cogs ($172)

The last part is to eliminate the recievable on the book of rockne when they made te sale

Debit Payable $530

Credit receivable ($530)

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3 years ago

The fact that companies can now organize and analyze vast amounts of data on individuals to determine individual behavior profil

viktelen [127]

The fact that companies can now organize and analyze vast amounts of data on individuals to determine individual behavior profiles is due mostly to advances in data analysis.

<span>Data analysis, also called the analysis of data, is a procedure of assessing, purging, changing, and demonstrating information with the objective of finding valuable data, recommending conclusions, and supporting decision making. Data analytics is also another name for the process.</span>

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3 years ago