The definition of commodity is D. Some examples are gold, silver and copper.
If one expects the market rate of return to increase across the board on all equity securities, then one should also expect an increase in all stock values.
<h3>Dividend Growth Model</h3>
- Investors can use the dividend growth model, a mathematical technique, to calculate a realistic fair value for a company's stock based on its present payout and anticipated dividend growth in the future.
- The fair value of a company is determined using a valuation method known as the dividend growth model, which makes the assumption that dividend growth will either be constant through time or will vary depending on the current period.
- The dividend growth model has the benefit of offering a straightforward approach to assessing a stock's fundamental worth. Investors are able to contrast the prices of stocks issued by businesses in various industries.
- All stock values should rise if one anticipates an increase in the market rate of return for all equity assets as a whole.
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Answer:
The contribution margin per unit is $100
Explanation:
The computation of the contribution margin per unit is shown below:
The Contribution margin per unit is
= Selling price per unit - variable cost per unit
= $160 - $60
= $100
hence, the contribution margin per unit is $100
We simply applied the above formula so that the correct value could come
And, the same is to be considered
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