1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ra1l [238]
3 years ago
15

The dividend discount model is still useful even when the company pays no dividends. For example, Amazon has never paid a divide

nd, but we can anticipate that Amazon will eventually pay a considerable level of dividends in the future. Suppose that Amazon will pay its first dividend of $201 per share in 10 years.
Does this invalidate the divident discount model?
Business
1 answer:
Delicious77 [7]3 years ago
8 0

Answer:

NO It doesn't.

Explanation:

As the price will discount the expected 201 dollar of dividens for rate of return in ten years along with future expected dividends

\frac{201}{(1+r)^{10}} = PV

This present value will be the value of amazon share price or it will be added to the present value of other expected dividends.

You might be interested in
Identify each action listed here as a federal, state, or shared power.
Korvikt [17]

Answer:

Appropriate funds for social programs  <u>SHARED POWER</u> ⇒ THERE ARE BOTH FEDERAL AND STATE SOCIAL PROGRAMS, AND EACH ONE GATHERS FUNDS FOR THEM

Construct a new highway  <u>SHARED POWER</u> ⇒ BOTH STATES AND THE FEDERAL GOVERNMENT CAN BUILD HIGHWAYS

Redesign and print the hundred-dollar bill  <u>FEDERAL POWER</u> ⇒ ONLY THE FEDERAL GOVERNMENT CAN PRINT MONEY

Determine the requirements to receive a driver's license  <u>STATE POWER</u> ⇒ STATE GOVERNMENTS DETERMINE THE REQUIREMENTS FOR ISSUING DRIVING LICENCES, E.G. AGE

Raise taxes  <u>SHARED POWERS</u> ⇒THERE ARE FEDERAL, STATE AND MUNICIPAL TAXES, AND EVERY GOVERNMENT LEVEL DETERMINES THEIR OWN TAX RATES.

Negotiate a trade agreement with the European Union <u>FEDERAL POWERS</u> ⇒ THE COMMERCE CLAUSE ESTABLISHES THAT ONLY CONGRESS CAN REGULATE INTERSTATE COMMERCE. THE EXECUTIVE BRANCH MAY NEGOTIATE A DEAL BUT CONGRESS MUST APPROVE IT.

Explanation:

5 0
3 years ago
What is the main reason the government creates regulations? to keep control over what is bought and sold in the us to make sure
zubka84 [21]

to make sure business is conducted safely and fairly

The government creates regulations in order to make sure business is conducted safely and fairly. Without regulation the market would have to auto regolate itself, which is a thing that it does, but the cost of this autoregulations are often too much. The government can help create basic directories to ensure that the trade is safe done.

5 0
4 years ago
Read 2 more answers
If a company reorganizes its operation to gain efficiency, the cost associated with this reorganization is classified as
ivanzaharov [21]

Answer: Restructuring cost

Explanation:

Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.

8 0
3 years ago
Buyer Bill will receive a utilities bill for an estimated $300 at the end of the month. At closing, the seller has used an estim
liraira [26]

Answer:

b) a debit to the seller and credit to the buyer for $100

Explanation:

The portion of the utilities bill consumed by the seller is not to be borne by buyer Bill, he cannot be made to pay for what he did not consume, the correct treatment is for seller to bear the $100 consumed by him by way of the following entries

Debit  The seller $100

Credit  Buyer bill $100

This is in the spirit of fairness to both Buyer Bill and Seller.  

5 0
3 years ago
Discuss the Sarbanes-Oxley Act 2002 and how it helps curb accounting fraud.
Soloha48 [4]

The Sarbanes-Oxley Act of 2002 was used to curb accounting fraud by improving financial disclosure of corporations, and checking and fixing frauds if they were found.

hope this helps

4 0
3 years ago
Read 2 more answers
Other questions:
  • Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and test-market Frosty Ice Cream. If this joint ve
    9·1 answer
  • Suppose that a computer software company controls the operating system market. Although the government knows that the price is h
    7·1 answer
  • A company that applies process costing is most frequently characterized by:A. Low standardization and high production volume.B.
    5·1 answer
  • Dexter Industries purchased packaging equipment on January 8 for $98,000. The equipment was expected to have a useful life of th
    11·1 answer
  • Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, tra
    8·1 answer
  • I will give you fifty five point if you make Brainliest me but if you don't and it's just a scam I'm going to report you and the
    14·1 answer
  • Which of the following below is an example of a capital expenditure? Group of answer choices replacing an engine in a company ca
    12·1 answer
  • What does a broker do if the buyer of an industrial complex wants the earnest money to be placed in an interest bearing trust ac
    6·1 answer
  • This introduces an applicant and the applicant’s résumé to a potential employer: a. Personal Goal Statement b. Cover Letter c. J
    5·2 answers
  • Typically the consumer price index (cpi) is calculated by checking the prices of?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!