Answer:
when valuing companies with temporarily high growth rates.
Explanation:
Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).
These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.
If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.
Multistage dividend growth models
It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.
The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.
Answer:
Total Selling Expenses for the month of February is $241,000
Explanation:
Sales Commissions ($700,000 of sales x 5%) = $35,000
Sales Manager Salary = $96,000
Advertising expenses = $90,000
Shipping expenses = ($700,000 of sales x 2%) = 14,000
Miscellaneous selling expenses = ($2,500 + $700,000 x 1% x 0.5) = $6,000
Total Selling Expenses (Summation of all the calculated above working)= $241,000
Answer:
1-2%
Explanation:
In simple words, every nation in the world have some kind of central authority that works to control and keep the inflation as low as possible. However, too low inflation can also lead to recession which brings problems way worse than inflation.
Thus, keeping in mind about all the information we have studied, it is advisable to keep inflation at 1% or 2% band, so that economy can grow moderately along with no price pressure on consumers.
With the absence of the options to choose from, lets look at general results of using cost-benefit analysis.
Explanation:
using cost-benefit analysis is a strategic way of making decisions based on cost and benefit solely.
Ideally any investment or strategic decision to be made by an institution needs a cost-benefit analysis.
This is done by listing all the projected resources needed to take up the strategic objective and costed. After which another list is made of the potential benefit that is likely to come to the organisation.
When the two is compared we say <em>you are making cost-benefit </em>analysis.
More often without secondary reasons, the option with the highest benefit over cost is chosen.
This cost and benefit analysis are made both qualitatively and quantitatively.
Quantitatively methods such as NPV are used.
#learnwithbrainly
Answer: See explanation and attachment
Explanation:
a. What is the contribution margin for a room night under the normal pricing if only the hotel depreciation and hotel staff (excluding housekeeping) are assumed fixed for all occupancy levels?
Price = $180
Less: Variable Costs:
House keeping staff = $23
Utilities = $7
Amenities = $3
Total variable costs = $33
Contribution margin = $147
B. Determine the contribution margin for a room night under the proposed weekend pricing.
Price = $120
Less: Variable Costs:
House keeping staff = $23
Utilities = $7
Amenities = $3
Total variable costs = $33
Contribution margin = $87
C. Prepare a differential analysis showing the differential income for an average weekend between the existing (Alternative 1) and discount (Alternative 2) price plan.
Check attachment for solution
D. Should management accept the proposed weekend pricing plan? Explain.
No. From the calculation in C, there is reduction in income.
