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2 years ago

To apply the dividend discount model to a particular stock, you need to estimate the ___

1 answer:

7 0

To apply the dividend discount model to a particular stock, you need to estimate the Sum of Present Value of Dividends and present Value of Stock Sale Price. This dividend discount model or DDM model price is the stock's intrinsic value.

The dividend discount model is a quantitative method used for predicting the price of a company's stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their present value.

If the value obtained from the dividend discount model is higher than the current trading price of shares, then the stock is undervalued and qualifies for a buy, and vice versa.

To learn more about dividend discount model here

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How can you employ one of the most powerful interactive business tools on the Internet today?

topjm [15]

Answer:

Online shopping one of the most powerful interactive business tools on the Internet today.

Explanation:

Today on internet most powerful interactive business tools is online marketing and shopping. The products and goods and services are easily available on internet and just with the help of delivery person anything can be easily delivered to the doorstep.

There are many intermediaries attached to this business and hence making it super profitable. Therefore, b to c business is on a boom these days and the customers needs are satisfied just sitting at home.

8 0

3 years ago

Read 2 more answers

18. If you have $1,000 to deposit in a savings account for 1 year, which of the following should you choose: 8.75% compounded co

sladkih [1.3K]

Answer:

c) 9.5% compounded annually

Explanation:

effective rate for a)

$e^{0.0875}=1+r\\$

1.091442264 = 1+r

r = 0.09144= 9.14%

effective rate for b)

$(1+0.09/4)^4 = 1+r_e$

1.093083319 = 1+ re

re = 0.0931 = 9.31%

effective rate for c)

as it comounds annuity it is the effective rate already 9.5%

As we are capitalizing the interest we want the higher rate thus 9.5 percent compounding annually

7 0

4 years ago

Read 2 more answers

Assume you have a home which would cost $120,000 to replace. You currently have the home insured for $85,000. Last night a torna

Vikki [24]

Answer:

The insurance claim is $22,135

Explanation:

In this question, we are to calculate the amount an insurance company will pay for a damaged house that was insured.

Firstly, it should be noted that at the time of replacement, the insurance company offer the insurance amount at 80% on actual replacement cost.

Thus, the insurance claim is calculated as follows;

Insurance claim = (Estimated damage * amount insured)/ 80% of replacement cost

insurance claim = (25,000 * 85,000)/80% of 120,000

= 2,125,000,000/96,000 = $22,135

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3 years ago

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) in a demonstration of the ________, 43% of psychology students who had learned about research on bystander nonintervention cam

hammer [34]

This is the enlightenment effect at work. This effect demonstrates that learning about the findings of psychological research can have real-world implications and can change behaviors. Most of the time, this effect is in a positive direction, as noted by the research on intervention behaviors and how more people showed a willingness to help when learning about associated research on the subject.

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3 years ago

What was the final straw that uncovered the Madoff Ponzi scheme?

hoa [83]

Answer:

Madoff's alleged affair was Ruth's "final straw" Learning of an alleged affair Bernard Madoff, had in the 1990s gave Ruth Madoff "the spine" to cut all ties with her Ponzi-scheming husband, a New York Times journalist reporting on the family said on "The Early Show."

Explanation:

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4 years ago