Answer:
The value of the firm's common stock is $48
Explanation:
The constant dividend growth model is used to determine the market value of the share and which can be expressed as:
here;
the value of the current market price of the share (P) = unknown?
The dividend expected in the next year (D) = $2.40
The required rate of return (r) = 12% = 0.12
The growth rate (g) = 7& = 0.07
Replacing the values into the above equation:
P = $48
Answer:
The statement is true.
Explanation:
The statement is true and correct that the Top company is a vulnerable company as vulnerable in business means that the company is weak and the reason due to which the top company is vulnerable as from last 40 years, the top manufacturing company is producing only a single product and does not engage in expanding the business.
Therefore, the correct option is A.
<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.
<u>Explanation:</u>
Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.
Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.
The answer is prequalification. This is a process or
arranging with a mortgage lender in means of buying a home. It is an initial
step and an essential step of having to manage and organize the financial needs
that you need in order to buy a home.
Answer:
Option 1
Explanation:
The best method to reduce the consumption of any goods or service is to increase the price of the product or services to such an extent that buyers themselves prefer not to buy such good or service.
Hence, the government must put tax on gun buyers. The more tax is implied, the more the demand for guns will reduce as the buyers will not prefer to buy.
Hence, option 1 is correct