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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.

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Giorgio Italian Market bought $4,200 worth of merchandise from Food Suppliers and signed a 90-day, 8% promissory note for the $4

anyanavicka [17]

Answer:

Dr. Cash $4,200

Cr. Interest Income $84

Cr. Note Receivable $4,116

Explanation:

Food Suppliers

Interest on the Note = $4,200 x 8% x 90 / 360 = $84

Amount to be recorded = $4,200 - $84 = $4,116

At the Time of Issuance the Journal Entry was

Dr. Note receivable $4,116

Cr. Sales $4,116

So, the Payment of $4,200 will be made.

The Interest Income will be $84

Now the Note Receivable account will be adjusted by receiving cash and recording interest income.

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3 years ago

Bingerton industries began the year with inventory of$85,000. Purchases of inventory on account during the year totaled $310,000

Charra [1.4K]

The first entry of the journal records the inventory of of $310,000 as debited and accounts payable as credited.

<h3>What is inventory management?</h3>

The process of counting and recording fluctuations in the prices of assets such as raw materials, work-in-progress, and finished goods refers as Inventory management.

Following are the Journal entries-

1. Inventory accounts A/c $310,000

To Accounts Payable A/c$310,000

(Being the inventory is purchased)

2. Accounts Receivable A/c $520,000

To Sales Revenue A/c $520,000

( Being inventory is sold)

3. Cost of Goods Sold A/c $335,000

To Inventory A/c $335,000

(Being inventory is sold )

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8 0

2 years ago

At the green restaurants corporation, an employee survey reports efforts to increase worker satisfaction by redesigning jobs led

ra1l [238]

Based on the scenario, the most likely impact on these trends on the profits of Green Restaurants is that there will be a lower cost present by which this will likely lead their restaurant to gain and increase their profits, having a higher profits.

7 0

3 years ago

Sergio039 [100]

Answer:

Statue of limitations

Explanation:

5 0

3 years ago

Clarence is a sole proprietor who started his business on July 29, 2017. He has not elected any particular tax year. Generally,

astra-53 [7]

Answer:

Clarence must file his tax returns on schedule C which is April 15, 2020 (for 2019 taxes).

Explanation:

As a sole proprietor of a small business Clarence must include his personal tax return when he files the sole proprietorship's tax returns. Tax returns must be filed on different dates depending on what type of business is filing:

Sole proprietorship and single-member LLC by April 15, 2020.
Partnership by March 16, 2020.
Multiple-member LLC by March 15, 2020.
S corporation by March 15, 2020.
Other corporations (not S corporations) by the 15th day of the 4th month after their fiscal year ends.

6 0

4 years ago