Answer:
TRUE
Explanation:
Using the Gordon Growth Model, we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.
Price per share is found to be D(1) / (r - g)
where:
Do = Dividend now
D1 = Dividend in year 1
g = growth
r = required return
So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.
A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a Capital Budget.
<h3>
What is a Capital Budget?</h3>
- The procedure a company uses to assess potential big projects or investments is called capital budgeting.
- Before a project is accepted or denied, capital budgeting is necessary. Examples of such projects include the construction of a new plant or a significant investment in a third-party enterprise.
- It is a means of locating a superior offer for the expansion of the company.
- A company's bottom line is frequently affected by significant capital decisions, which are frequently tied to capital planning.
- In capital budgeting, projects that improve a business are chosen. Almost everything, including the acquisition of land or the purchase of fixed assets like a new truck or machinery, can be included in the capital budgeting process.
To learn more about Capital Budget refer to:
brainly.com/question/23719404
#SPJ4
<span>A fast-food restaurant decides to raise the price of its hamburgers. assume the firm is in a monopolistically competitive industry. what will happen to the demand for its hamburgers? When the fast-food restaurant raises the price of hamburgers, some customers may stay and pay the higher price because they want that specific brand of hamburgers, other may go elsewhere to find them cheaper.
When prices raise, some customers stay because they are attached to that specific company, others leave because they want a burger but for a lower price.
</span>
Answer:
The employer
Explanation:
because use they are replaceable for their employees to be treated well and equally.
Answer: Will report a liability of $5000 for judgement debt and a claim of $11,000
Explanation:
The liability refers to the obligations of the firm which are certain is going to make payment as compensation.
The $5000 liability, although payment has not been made it's already Incurred by the company under the acural concept.
The claim of $11,000 is only probable and not certain even though amount and time of execution can be estimated, since it's not certain it will only be recorded as a claim in the goverments fund balance sheet.
