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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.

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Hernandez Builders has a gross payroll for January amounting to $500,000. The following amounts have been withheld: Federal inco
sattari [20]

Answer:

Net pay is  $383,750

Explanation:

Hermandez builders net pay can be computed by deducting the following from the gross payroll amount:

Federal income taxes

social security

medicare

charitable contributions

union dues

The net pay is computed thus:

Gross payroll pay                                                      $500,000

Federal income taxes                              $63,000

Social security                                          $31,000

medicare                                                  $7,250

charitable contributions(1%*$500000)  $5,000

union dues (2%*$500000)                     $10,000    

                                                                                ($116,250)

Net pay                                                                     $383,750  

3 0
3 years ago
Because other firms are willing to pay to advertise with them, suppliers of nonrival private goods often modify their products t
OLEGan [10]

Answer:

b. Public Goods

Explanation:

Public Goods -

It is the type of goods and services , which each and every person can use , without any kind of restriction , is known as public goods .

These type of goods are considered to be non - rivalrous , i.e. ,  these goods do not reduce , irrespective of their usage .

And ,

are non - excludable , i.e. , these goods are open for all and some individual or group van not hold on to it .

The example of public goods are - public parks , sewer system , law enforcement etc .

7 0
3 years ago
Brenda and Louise are twin sisters who each married 20 years ago. Brenda and her husband run a small piano tuning business. They
NeX [460]

Answer: Probably, still happy

Explanation:

People measure success differently, and what makes an individual happy may not be applicable to another, some person's gain satisfaction in doing their own business, while some prefer working for other people. This is why there isn't any specific measure for people's success. Concerning Brenda and Louise, there is a great possibility that they are happy in their various endeavors, having chosen a particular career part and stuck to it for years. This doesn't mean they won't have challenges but means they are happy where they are.

5 0
3 years ago
Why is it important to be present and active in your courses?
nalin [4]
It is important to Learn, and Write down Results/Notes.
5 0
3 years ago
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Which of the following businesses describes a branch?
Sergio [31]
I believe that it’s C
ANSWER =C
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2 years ago
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