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1 year 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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The records of penny Co. Indicated that 415,000 of merchandise should be on hand December 31. The phyiscla inventory indicates t

Nata [24]

Answer:

See explanation section

Explanation:

As there is a difference between the physical count of the inventory and actual Inventory count, it indicates that the merchandise inventory is either sold or wasted. However, for continuing the operation smoothly, it is assumed as sold. Therefore, the journal entry to record the sale is -

December - 31 Cost of goods sold Debit 45,000

($415,000 - $370,000)

Merchandise Inventory Credit 45,000

(To record the sale of merchandise: adjusted)

5 0

3 years ago

If Frank is researching the number of customers who have gluten or wheat allergies, and then he begins to devise a strategy to c

katrin2010 [14]

Frank is involved in planning if he researches the people that have wheat allergies and devises a way to cater to the people.

<h3>What is planning in business?</h3>

These are the strategies that are used in business where the manager would set objectives and goals for the company and then devise the ways that they would reach the goals they have set.

This is what Frank is doing here by setting up strategies to help cater for the individuals.

Read more on planning here:brainly.com/question/2486491

7 0

2 years ago

You purchased a stock at a price of $46.55. The stock paid a dividend of $1.79 per share and the stock price at the end of the y

Mama L [17]

Answer:

3.84%

Explanation:

Calculation for dividend yield

Using this formula

Dividend Yield(%) = D / P0

Where,

D=$1.79

P0=$46.55

Let plug in the formula

Dividend Yield(%) =$1.79/$46.55

Dividend Yield(%) =0.0384*100

Dividend Yield(%) =3.84%

Therefore the dividend yield will be 3.84%

4 0

3 years ago

Kahil Mfg. makes skateboards and uses a weighted average process costing system. On May 1, 2013, the company had 400 boards in p

shutvik [7]

Answer:

Equivalent Units Materials 1700 Conversion 2630

Cost per EUP Materials: 38.308 Conversion : 19.55

Explanation:

The weighted average method can be calculated using the beginning inventory and the units started .

Kahil Mfg

Weighted Average Method

Particulars Units % Of Completion Equivalent Units

Materials Conversion Materials Conversion

Beginning

Inventory 400 70 85 280 350

Units Started 3800 40 60 1520 2280

Equivalent Units 1700 2630

Beginning WIP Inventory costs

Direct material Conversion

$ 4,349 4,658

Current period costs

60,775 46,750

Total Costs 65,124 51,408

Cost per EUP

65,124/1700 51,408/2630

38.308 19.55

5 0

3 years ago

Scarcity is the most basic problem in economics true or false

Rasek [7]

True.

I hope this helps! :)

5 0

2 years ago

Read 2 more answers