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3 years ago

Which of the following statements is CORRECT?

Business

1 answer:

rusak2 [61]3 years ago

6 0

Answer:

D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.

Explanation:

So, we evaluate each option.

a. We discount the dividends by the required rate of return. So incorrect.

b. The dividend yield is annual dividend per share divided by stick price per share. the 5% is the growth in dividend and not the actual dividend itself. So, incorrect.

c. The constant growth is appropriate for companies whose dividend patterns are stable. Startups have multiple stage growths and this option becomes incorrect as constant growth is not applicable.

d. A zero growth stock is one where dividend remains the same. So when there is no growth in dividend, the constant growth model becomes inapplicable. So, the statement is correct.

So, here we have our correct statement and all others are incorrect.

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1) When quantity demanded in a market is more than the quantity supplied, _____ occurs.

Greeley [361]

B because we really need equilibrium

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3 years ago

Which of the following definition below describes a wall opening

Tcecarenko [31]

I didn't find the answer for an expression for business regarding an opening wall. The one I know is an opening at least 30"" high and 18" wide in a wall or partition through which people may fall

8 0

3 years ago

The present value of an expected future payment ________ as the interest rate increases.

LekaFEV [45]

The present value of an expected future payment "falls" as the interest rate increases.

This is based on the idea that the bond is paid at a fixed interest rate. Thus as the interest rate increases, the value of the bond decreases or falls because investors would certainly stay away from such bonds, therefore, making its value reduce or fall.

Similarly, if the interest falls, a bond with a fixed interest rate becomes more attractive to investors.

Hence, in this case, it is concluded that the interest rates determine the value of the bond.

Learn more here: brainly.com/question/17175565

6 0

3 years ago

You would like to establish a trust fund that would pay annual payments to your heirs of $100,000 a year forever. You expect the

Andrej [43]

Answer:

The amount to deposited = $1,538,461.54

Explanation:

A fund that pays a fixed amount for forever is an example of a perpetuity. Hence, the amount to be deposited today is the present value of the perpetuity.

This given below as follows:

PV = A × 1/r

PV - present value of perpetuity

r- Interest rate = 6.5%. A- annual cash flow - 100,000

PV = 100,000 × 1/0.065= 1,538,461.54

The amount to deposited = $1,538,461.54

5 0

3 years ago

Onyemah Corporation uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month

natulia [17]

Answer:

43,240 units

Explanation:

Note : We are using FIFO method thus, we are only interested in the units worked in this year.

Calculation of equivalent units of production for conversion costs

To Finish Beginning work in process inventory (7,700 × 60%) = 4,620

Started and Completed ((39,600 - 7,700) × 100%) = 31,900

Ending work in process inventory (9,600 × 70%) = 6,720

Equivalent units of production for conversion costs = 43,240

Conclusion :

The equivalent units of production for conversion costs in the Brazing Department for November is 43,240 units.

8 0

3 years ago