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laiz [17]
3 years ago
13

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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Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,500 of dir
Dmitriy789 [7]

Answer:

The answer is: $29,000

Explanation:

To calculate Job A3B's costs during September we must add direct materials plus 3 times direct labor:

September costs = direct materials + (direct labor x 3) = $1,500 + $9,000

September costs = $10,500

We do the same for October:

October costs: direct materials + (direct labor x 3) = $2,000 + $16,500

October costs = $18,500

The total cost for Job A3B is: $10,500 + $18,500 = $29,000

5 0
3 years ago
I need some help pls
katrin2010 [14]

Answer:

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Explanation:

6 0
3 years ago
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kala and leah partners in best designs have capital balances of $40,000 and $60,000 respectively. adam joins the partnership by
inna [77]

Answer:

The solution to the following problem is done below.

Explanation:

a) Journalize the entries to record the admission of adam to the partnership.

Account Title                                                                          Dr            Cr

Kala, Capital                                                                         20,000

Adam, Capital                                                                                       20,000

Cash                                                                                      10,000

Kala, Capital                                                                                           8,000

Leah, Capital                                                                         6,000

Adam, Capital                                                                                        24,000

b) Immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for $35,000. journalize the entry to record the transaction.

Account Title                                                                          Dr            Cr

Leah, Capital                                                                        13,500

Denton, Capital                                                                                    13,500

6 0
3 years ago
Read 2 more answers
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Answer:

physical strength

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3 years ago
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Analysis of the Impact of Adjustments on Financial Statements At the end of the first month of operations, the Stephan Company’s
matrenka [14]

Answer:

Explanation:

The correct amounts are shown below:

1. Assets =  Asset balance - depreciation + service revenue

               = $60,000 - $925 +  $1,500

               =  $60,575

2. Liabilities = Liabilities balance + employees wages earned

                    = $20,000 + $410

                    = $20,410

3.  Stockholders' Equity = Equity balance - depreciation + service revenue - employees wages earned

                                        = $40,000 - $925 + $1,500 - $410

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4.  Net Income = Net income balance - depreciation + service revenue - employees wages

                        = $9,000 - $925 + $1,500 - $410

                        = $9,165

6 0
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