Federal spending that is authorized by permanent laws and does not go through the annual appropriation process is called mandatory spending.
<h3>
What does mandatory spending signify?</h3>
Government spending that is subject to eligibility standards established by Congress is known as mandatory spending. Social Security, Medicare, and unemployment insurance are a few examples. All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes contributions to entitlement systems like Social Security and Medicare as well as required interest payments on the national debt. Government expenses for legally required programs are considered mandatory spending. Major fiscal trends are heavily influenced by mandatory spending. Government income decrease and spending increases during economic downturns as more people become eligible for required programs like Income Security and Unemployment Insurance. Deficits thus grow or surpluses decline as a result.
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<u>A. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.</u>
This is the false statement.
<u>Explanation</u>:
The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.
The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.
Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.
Answer:
False
Explanation:
What is a transportation company called?
- Courier companies are usually spin-offs from freight forwarders.
- There are various types of courier companies, such as airfreight courier companies or road couriers.
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Positive reputation in local community would attract new customer
I think the correct answer is A. Investors who buy preferred stock receive dividends after the common stock shareholders. Preferred stock is a stock type that gives right to the owner a fixed share of the company's profit or fixed dividend.
