All categories

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.

You might be interested in

What is a tax ? (personal finance )

OLEGan [10]

Tax<span> is the single largest expense for insurance, income, everyday purchases, etc. The more money you receives, the more taxes you pay. </span>

7 0

3 years ago

Read 2 more answers

Do you believe that managers today are using more boss- or subordinate-centered leadership styles?

Elan Coil [88]

Answer:

Today's managers are using more subordinate-centered leadership styles to get the best out of them.

Why: Reasons

Why today's managers are more titled toward the subordinate-centered leadership styles, following are few of the reasons:

(1) In today's world, businesses have become much more complicated as ever before, competition has changed the face of any businesses, therefore, managers want to have new and creative ideas, and this is only possible when employees are given free hand in choosing their work environment, thus, it is only possible when manager are having supportive behavior towards their subordinates.

(2) Human resource departments are so efficient now-a-days that they are always in searching of exciting talent. They do the head-hunting on the continuous basis, where they hire employees from other organisations, therefore, if you don't treat your employees well, then they will have more chances to switch the organisation and avail the better available chances.

(3) Employee enjoy working in an environment where they have freedom, bosses and employees work together like Google and SEMCO. In both of these organisations, the organisational structure help employees in participation towards the decision making in the organisation. Employees feel more productive and loyal to the organisation, therefore, employees-centered leadership approaches are more valid now-a-days.

4 0

3 years ago

Which of the following is not a common complaint about marketing?

beks73 [17]

The answer is D because lots of people do not complain about that

6 0

4 years ago

Read 2 more answers

A _______ is a share of ownership in a company.

Dvinal [7]

Answer:

Partnership

Explanation:

When you share ownership of a company, you are partnering with someone.

8 0

3 years ago

Read 2 more answers

The Swifty Company issued $300,000 of 8% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each

makvit [3.9K]

Explanation:

The journal entries are shown below:

a. On January 1

Cash A/c Dr $288,000 ($300,000 × 96%)

Discount on Note payable A/c Dr $12,000

To Note Payable A/c $300,000

(Being the note payable is recorded at discount)

b. On July 1

Interest expense A/c Dr $13,500

To Discount on bonds payable A/c $1,500 ($12,000 ÷ 8)

To Cash A/c $12,000 ($300,000 × 8% ÷ 2)

(Being interest expense is recorded)

c. On December 31

Interest expense A/c Dr $13,500

To Discount on bonds payable A/c $1,500 ($12,000 ÷ 8)

To Cash A/c $12,000 ($300,000 × 8% ÷ 2)

(Being interest expense is recorded)

7 0

4 years ago