Answer:
c. requires the growth rate to be less than the required rate of return
Explanation:
The Dividend growth model was formulated by Myron Gordon.
The model helps in determination of market price of a stock ( )
It is given by the following formula:
where = Current market price per share/stock
= Last paid dividend per share
g = annual growth rate in dividends denoted in percentage
= Cost Of Equity or Investor's required rate of return
The model assumes constant rate of growth in dividends. Another major shortcoming of the model being it's assumption of constant required rate of return of the investors.
One of the assumptions of Dividend Growth Model is,
Dividend Growth Rate < Required rate of return
Reserves equal deposits with the Fed plus vault cash
Option D
<u>Explanation:
</u>
"Vault currency" simply is the cash a bank holds in buildings (most of which are normally kept in its caves) to satisfy everyday cash needs.
Foreign governments, the Bank, and perhaps most commercial banks in the USA are the primary providers of Federal Reservation Deposits. Federal Reserve Deposits may not be held by private citizens and businesses.
All FRD and FRN notices are reported as FRD liabilities. FRD liabilities, What the Fed have traded for (gold and mostly t-billion) these investments and notes are reported as the Fed's reserves.
The principle that Latasha caters for that her husband does not is that <u>d. Many </u><u>decisions </u><u>are taken using </u><u>marginal thinking. </u>
<h3>Marginal decision making</h3>
- Involves making decisions based on the marginal costs and benefits.
- A person will make a decision that has more benefits than costs.
By swimming more, Latasha would make get the benefit of being better at something she is already good at. If all she does is swimming however, she would incur costs of losing out in the other activities which would surpass the benefits of being good in swimming alone.
In conclusion, option D is correct.
Find out more about marginal decision making at brainly.com/question/13764545.