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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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The 151 member governments of the World Bank are expected to increase the bank's funding by $75 billion, though some United Stat

Sonja [21]

Answer:

The correct option is option C from the below options.

Explanation:

As the question was not complete, the complete question is found online and is attached here with.

Also the options are not given which are as below:

(A) an obstacle to Congressional passage being the concern

(B) a concern as an obstacle to Congressional passage

(D) the concern, an obstacle to Congressional passage,

(E) as an obstacle for Congress to pass it the concern

Option A is incorrect as it is not an obstacle.

Option B is incorrect as it is not a concern to an obstacle

Option C is correct as the issue is acting as an obstacle.

Option D is incorrect as the two phrases are not being related.

Option E is incorrect as the concern and obstacle are not correlated.

6 0

3 years ago

Innovative is a characteristic of which market structure

kotykmax [81]

Innovative is a characteristic of the OLIGOPOLY MARKET STRUCTURE. Oligopoly market structure is one that is characterized by a small number of large firms that dominate the market and which sell products that are either similar or different. There is a high barrier to entry into the market. Oligopolist industries are very innovative; they used their innovations to promote technological advancement and economic growth.

8 0

3 years ago

The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose

Annette [7]

Answer:

d. Debit Bad Debt Expense; Credit Accounts Receivable

Explanation:

This would be the entry needed to write-off this account. This is an example of the direct write-off method of accounting. This is a method that is employed to recognize bad debts expense that arises from credit sales. This method does not permit allowance account. Instead, an account receivable is written-off directly to expense after the account is determined uncollectible.

7 0

3 years ago

Which of the following types of economies is most likely to develop new and better products?

Zinaida [17]

Market because it promotes competition which in return lowers prices and increases quality

6 0

3 years ago

As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the followin

Airida [17]

Answer:

Option (C) is correct.

Explanation:

EBIT = Sales revenues - Depreciation - Other operating costs

= $39,500 - $10,000 - $17,000

= $12,500

EBT/PBT = EBIT - Interest expense

= $12,500 - $4,000

= $8,500

PAT = EBT - Tax rate

= $8,500 - 35% of $8,500

= $8,500 - $2,975

= $5,525

CFAT = PAT + Depreciation

= $5,525 + $10,000

= $15,525

Therefore, the Year 1 cash flow is $15,525.

8 0

3 years ago