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3 years ago

The proper discount rate when using the dividend discount valuation model is the:

Business

1 answer:

Anton [14]3 years ago

7 0

Answer:

B) Cost of equity capital

Explanation:

Dividend discount model is used to find the Price of a given stock by calculating the present value of expected future dividends.

The dividend discount formula for finding price(assuming zero growth rate);

P0 = D1/r

The rate; r is the discount rate which is the cost of equity since dividends are paid on equity capital.

Weighted average cost of capital (WACC) is used to discount free cashflows of potential projects.

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Gerome Houser is a pastry chef at McKay’s Eatery. His annual salary is $45,623. His benefits include $1,755 for two weeks of vac

alexgriva [62]

First, we add up all the benefits that Gerome Houser gets from his job. That is,
$1,755 + $3,898 + $2,898 +$2,098 +$1,404 = $12,053
Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer.
($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%.

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3 years ago

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, th

Sloan [31]

If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will rise, causing households and businesses to hold less money.

Option A

<u>Explanation: </u>

Fiscal policy is the central bank's macroeconomic policy. This covers the supply of money and interest rate control and is also the demand-side economic strategy of a country's government for achieving macroeconomic targets such as inflation, investment, productivity, and liquidity.

If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.

The supply of money meets the demand for money, and the real rate of interest is higher than the number of equilibrium.

7 0

3 years ago

Which of the following statements is true? Question 8 options: Always shake hands in an interview as it is the polite thing to d

SVETLANKA909090 [29]

I think the answer would be A. It definitely would not be B or C and D seems kind of rude so I think that A. would be the most courteous and kind. Hope this is helpful for you! :)

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3 years ago

Read 2 more answers

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela

shtirl [24]

Answer:

direct materials price variance = actual quantity x (actual price - standard price)

direct materials price variance = 7,820 x ($5.30 - $15) = 7,820 x (-$9.70) = -$75,854 favorable

direct materials usage variance = standard price x (actual usage - standard usage)

direct materials usage variance = $15 x (7,820 - 9,660) = -$27,600 favorable

direct labor price variance = actual hours x (actual rate - standard rate)

direct labor price variance = 2,460 x ($12.30 - $15) = 2,460 x (-$2.70) = -$6,642 favorable

direct labor usage (efficiency) variance = standard rate x (actual hours - standard hours)

direct labor usage (efficiency) variance = $15 x (2,460 - 3,680) = $15 x (-1,220) = -$18,300 favorable

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3 years ago

older person nearing retirement might typically find it better to invest in ________ since they generally seek less risk with th

Zarrin [17]

Answer:

A las personas mayores que se acercan a la jubilación generalmente les parece mejor invertir en NEGOCIOS ya que generalmente buscan menos riesgo con sus inversiones.

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3 years ago