Answer:
The correct answer is True.
Explanation:
The Gordon growth model is a method of valuing a company's share price, using constant growth and discounting the value of future dividends today. Gordon Growth is often known by its English name.
It is a dividend discount model that assumes that the growths that the company will experience are constant. It is based on the theory that the price of a share should be equal to the price of the dividends that the company is going to pay, discounted to its net present value.
If the share price in the market is less than the result obtained by the discounted dividend model, the share is undervalued and therefore, it is recommended to buy. If, on the other hand, the market price is higher than that of the model, it is understood that the share price is too high.
The answer to this question is C, $5,790. Jeff will need $5,790.
...evaluated through organising questionnaires in the organization.
Answer:
d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..
Explanation:
Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.
Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.
Answer:
$1,728
Explanation:
To reach maximum depreciation expense we simply first compute the depreciation which is shown below:-
Depreciation = Purchased computer × Depreciation Rate
= $30,000 × 11.52%
= $3,456
Refer to the MACRS Table 1
Maximum depreciation expense = Depreciation × Half year convention
= $3,456 × 50%
= $1,728
Here we considered half year convention of equipment.
