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Bond [772]
3 years ago
10

For the Dividend Growth Model, the equation can be written as follows: P0 = =D1/(RE – g). How can this equation be rearranged?

Business
1 answer:
zmey [24]3 years ago
4 0

Answer:

C) RE = D1/P0 + g

Explanation:

The formula above is the cost of retained earnings or the cost of equity.

The first portion of the formula (D1/P0) is known as dividend yield which is simply dividend divided by price.

The second part(g) is known as the growth rate of dividends.

The initial formula is rearranged thus:

P0=D1/(RE – g)

P0*(RE – g)=D1

RE – g=D1/P0

RE=D1/P0+g

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Flauer [41]

Answer:

Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.

6 0
2 years ago
Read 2 more answers
In measuring an impairment loss for a financial asset under U.S. GAAP and under IFRS, the carrying value of the financial asset
Vitek1552 [10]

In measuring an impairment loss for a financial asset under U.S. GAAP and under IFRS, the carrying value of the financial asset would be compared to:

under U.S. GAAP Fair value and under IFRS recoverable amount.

Explanation:

In US GAAP, the cost of financial asset depreciation is calculated as the difference between carried value and fair value; in compliance with IFRS, a loss of financial asset impairment is defined as the difference between carrying value and the percentage of the asset that can be recouped.

In compliance with US-based ASC 360-10-35-20. The recovery of a historically identified impairment loss (or "restoration") is forbidden because an item is deemed to have a new cost base after an impairment loss has been registered.

7 0
3 years ago
As of December 31, Plush has not recorded any insurance expense for the year. The only insurance policy it owns is the one purch
konstantin123 [22]

Answer:

Debit Insurance expense    $10,000

Credit Prepaid Insurance    $10,000

Being entries to recognize insurance expense for the period (August to December).

Explanation:

Given;

Insurance policy was purchased on July 10 to run for 3 years.

Cost of policy = $72,000

Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)

Monthly depreciation = $72,000/(3 × 12)

                                    = $2,000

Total amortization between August and December = 5 × $2,000

                                                                                      = $10,000

Journal entries

Debit Insurance expense    $10,000

Credit Prepaid Insurance    $10,000

Being entries to recognize insurance expense for the period (August to December).

7 0
3 years ago
During February 2017, its first month of operations, the owner of Schwenn Enterprises invested cash of $100,000. Schwenn has cas
olchik [2.2K]

Answer:

Cash balance is $85,000

Explanation:

In determining the cash balance of the period, we must know how much is the inflow and outflow of the cash for the period and add it or deduct to the beginning balance. It is simply, beginning balance plus inflows less outflows. February is the first month of the operation of Schwenn Enterprises, that only means the possible beginning balance of the cash is the cash investment. So to further discuss it clearly, let’s do the computation.

Beginning balance on February $100,000

Add: inflow

Cash sales $20,000

Less: outflow

payment on expenses $35,000

CASH BALANCE AT FEBRUARY 28 $85,000

7 0
3 years ago
You write one JNJ February 70 (strike price) put for a premium of $5. Ignoring transactions costs, what is the break-even price
Lera25 [3.4K]

Answer:

$65

Explanation:

The computation of the break even price for this position is shown below:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes upward to $65 so you lose only $5 but it falls than the stock would be $0

Hence, the break even price of this position is $65

Therefore by applying the above formula we can get the break even price and the same is to be considered

4 0
3 years ago
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