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masya89 [10]
2 years ago
5

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

Business
1 answer:
marshall27 [118]2 years ago
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

brainly.com/question/23040788

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David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,700. They have made prepayments
Snowcat [4.5K]

Answer:

-$1,800

Explanation:

Given that

Tax liability = $1,700

Prepayment made = $1,500

Child tax credit = $2,000

The computation of tax refund is given below:-

= Tax liability - (Prepayment made + Child tax credit)

= $1,700 - ($1,500 + $2,000)

= $1700 - $3500

= -$1,800

Therefore, from the above calculation simply we subtract tax liability from prepayment and child tax credit.

3 0
4 years ago
Porsche has enhanced power over buyers because its strong reputation makes buyers more willing to pay a premium price. this ____
alexgriva [62]

This "lessens" rivalry, since buyers become "less" price-sensitive.

Price sensitivity is how much the cost of an item influences customers' buying practices. In financial matters, price sensitivity is usually estimated utilizing the price elasticity of demand. For instance, a few buyers are not willing to pay even a couple of additional pennies per gallon for gas, particularly if a lower-valued station is adjacent.

7 0
3 years ago
Read 2 more answers
If a stock split occurred, when calculating the current year's EPS, the shares are treated as issued:A. At the end of the year.B
son4ous [18]

Answer:

Correct answer is (C)

Explanation:

At the beginning of the year.

Earnings per share (EPS) is the portion of profit earned by the company that is allocated to each outstanding share of its common stock. It is determined by taking the difference between a company's net income and dividends paid for preferred stock and then divided by the average number of shares outstanding. So if stock split occurred when calculating the current year EPS, the shares are treated as issued at the beginning of the year.

7 0
3 years ago
In the long run, profits in a monopolistically competitive market are zero because: a. of government regulations. b. of collusio
zvonat [6]

Answer:

c. firms are free to enter and exit the market.

Explanation:

A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.

The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.

6 0
3 years ago
In its statement of cash flows issued for the year ending September 30, Berne Company reported a net cash inflow from operating
Dafna1 [17]

Answer:

B. $29,000

Explanation:

The cashflow from operating activities is calculated as below:

Cashflow from operating activities = Net income + Depreciation - Working capital investment

                                                          = Net income + Depreciation - (Change in inventories + Change in account receivables - Change in account payables)

Putting all the number together, we have:

123,000 = Net income + 38,000 - [(-27,000) + 31,000 - 48,000 - 12,000),

Solve the equation we get Net income = 29,000.

5 0
3 years ago
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