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Dennis_Churaev [7]
4 years ago
10

The Gordon dividend discount model:

Business
1 answer:
xz_007 [3.2K]4 years ago
6 0

Answer:

The correct answer is letter "D": requires that the dividend growth rate be less that the required rate of return.

Explanation:

The Gordon Growth Model is used to calculate the intrinsic value of a stock today, based on the stock's expected future dividends. It is widely used by investors and analysts to compare the predicted stock value against the actual market price. Its formula is:

P = D / r-g

where:

  • P= current stock price
  • g= dividend growth rate expected
  • r= rate of return
  • D= value of the dividends for the next year

The formula has limitations because <em>the rate of return must be higher than the dividend growth rate expected</em>. Otherwise, the resulting stock price would be negative and the model would be useless.

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The following information pertains to Sheridan Company.
DanielleElmas [232]

Answer:

Adjusted Cash Balance at 31 August 2022 = 9654

Explanation:

Bank Reconciliation Statement at August 31, 2022

Cash Balance as per Bank  August 31,                                         $7338

Add: Deposit in Transit                                                                  $3010

<u>Deduct: Outstanding Checks                                                        ($694 )</u>

<u>Adjusted Cash Balance                                                                  $9,654</u>

<u />

Cash Balance as per books, August 31,                                        $7374

Add: Receivable collected by bank                                               $2326

<u>Less:Bank Service Charges                                                           ($46)     </u>

<u>Adjusted Cash Balance                                                                  $9,654 </u>

<u />

5 0
3 years ago
Someone taking a course in Web design is affecting what factor of production?
Solnce55 [7]

Answer:

Someone taking a course in Web design is affecting human capital.

7 0
3 years ago
a study by university of minnesota economist, joel waldfogel, estimated the difference in the actual monetary value of gifts rec
erica [24]

The deadweight loss is $90.6.

<h3>How to calculate the loss?</h3>

The study suggested that the average recipient's valuation of the gift received was approximately 90% of the actual purchase price of the gift.

This means there's a loss of 10% in value constitute the deadweight loss.

Average amount spent on gift = $906

Percentage loss in value = 10% or 0.10

Calculate the deadweight loss -

= Average amount spent on gifts * Percentage loss in value

DWL = $906 * 0.10

The deadweight loss would be $90.6.

Learn more about dead weight loss on:

brainly.com/question/15415492

#SPJ1

A study by university of minnesota economist, joel waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. the study suggested that the average recipient’s valuation was approximately 90% of the actual purchase price.

Calculate the deadweight loss if the average amount is $906.

8 0
2 years ago
When trying to assess your economic well-being you should:
Alex_Xolod [135]

Answer:

The correct answer is A

Explanation:

Economic well being is described or states as having the future as well as the present financial security. It involves the ability to make the choices of the economic and have a sense of satisfaction, security and the personal fulfillment with the one's employment pursuit and the personal finances.

So, in order to assess or evaluate the economic well being, one should compare the situation of his or her economic well being with that of most of the people who are alive today.

5 0
3 years ago
On november 1, current year, rockcreek corporation invested 60,000 in a new delivery truck. the truck is being depreciated at a
omeli [17]
The answer would be the stockholders w=equity minus
8 0
4 years ago
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