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2 years ago

Which of the following statements is true about the constant growth model?

1 answer:

7 0

Answer: The constant growth model can be used if a stock's expected constant growth rate is less than its required return.

Explanation:

The Constant Growth Model is a stock valuation method.

It assumes that a company's dividends are increasing at a constant growth rate indefinitely.

Formula: Current price = (Next dividend the company is to pay) ÷ (required rate of return for the company - expected growth rate in the dividend.

When expected constant < required return, then the constant growth model can be used.

Hence, the statement is true about the constant growth model :

The constant growth model can be used if a stock's expected constant growth rate is less than its required return.

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The purpose of a(n) _____ is to obtain additional information on a candidate and to clarify information gathered throughout the

mario62 [17]

Answer: interview

Explanation:

During interview, a candidate is able to talk extensively about himself and achievements. By this, he is able to clarify a lot of things about himself

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3 years ago

Read 2 more answers

The purpose of a PERT network is: to monitor the quality of a product for compliance with ISO 9000 standards. to monitor the pro

aliina [53]

Answer:

The correct answer is the second option: to monitor the progress of a multi-step project during its development.

Explanation:

To begin with, a <em>"Program Evaluation and Reviews Techniques"</em> or PERT as it name indicates it refers to an stadistic technique by which the companies can follow the process of certain projects that they are having currently. Moreover, its main purpose is to manage and analyze the steps that a project has in order to make them less susceptible to errors. In addition to that, its main factor to observe is the time during the steps of the project. Nowadays is very common to use a tool like this in major companies.

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3 years ago

If $525,000 of bonds are issued during the year but $210,000 of old bonds are retired during the year, the statement of cash flo

geniusboy [140]

Answer and Explanation:

Given:

Issue of new bonds price = $525,000

Retired price of bonds = $210,000

It is given that new bonds price a $525,000 issue and the value of retire Bond price will $210,000.

Issue of new bonds will increase cash by $525,000 because business gets cash from the issue of bonds and retire off the old bond will decrease cash by $210,000.

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3 years ago

Zhang Industries is preparing a cash budget for June. The company has $29,500 cash at the beginning of June and anticipates $98,

PtichkaEL [24]

Answer:

Amount to be borrowed $18,040

Explanation:

The computation of the amount that should be borrowed is given below:

Opening cash balance $29,500

Add Cash Receipts $98,000

Less Cash Disbursements -$122,540

Balance before adjustment $4,960

Desired ending cash balance $23,000

Amount to be borrowed $18,040

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3 years ago

The Company deposits $6,900 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $6,900 plus ear

astra-53 [7]

Answer:

$8750.87

Explanation:

This is compound interest problem. The formula used to solve this would be:

$F=P(1+r)^t$

Where

F is the future value (what we want, after 3 years)

P is the initial value (given 6900)

r is the rate of interest per period

here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)

t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12

Substituting, we get our answer:

$F=P(1+r)^t\\F=6900(1+0.02)^{12}\\F=6900(1.02)^{12}\\F=8750.87$

<u>There will be about $8750.87 at the account at the end of 3 years!</u>

8 0

3 years ago