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ra1l [238]
4 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]4 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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huck Ponzi has talked an elderly woman into loaning him ​$30 comma 000 for a new business venture. She​ has, however, successful
user100 [1]

Answer:

The woman will receive $ 4,171.96 per year.

Explanation:

We need to determinate the PTM of a 15 years' ordinary annuity which present value is 30,000 discounted at 11%

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $30,000.00

time 15

rate 0.11

30000 \div \frac{1-(1+0.11)^{-15} }{0.11} = C\\

C  $ 4,171.957

3 0
4 years ago
For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect
salantis [7]

Answer:

                                             Debit  Credit  

A Bonds payable                    Decrease Increase  

b. Unearned Service Revenue Decrease Increase  

c. Depreciation Expense      Increase Decrease      

d. Common Stock                    Decrease Increase  

e. Buildings.                            Increase Decrease  

f. Rent Revenue.                   Decrease Increase  

 

Explanation:

Debit  Credit  

A Bonds payable Decrease Increase  

Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments.    

b. Unearned Service Revenue Decrease Increase  

Unearned Service Revenue is a liability account that is used to record advanced collections from clients. In other words, it pertains to revenue already collected but the service has not yet been rendered    

c. Depreciation Expense Increase Decrease  

Depreciation expense is the amount of depreciation that is reported on the income statement.    

d. Common Stock Decrease Increase  

Common stock is a security that represents ownership in a corporation.    

e. Buildings.  Increase Decrease  

A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory    

f. Rent Revenue. Decrease Increase  

Rent Revenue is the title of an income statement account which (under the accrual basis of accounting) indicates the amount of rent that has been earned during the period of time indicated in the heading of the income statement.    

7 0
3 years ago
One of the potential benefits to a firm of introducing new-to-the-world products or services is Multiple Choice cost savings. th
Assoli18 [71]

The best answer to this question is the unlisted option of <u>d) establishment </u><u>of a </u><u>completely new market.</u>

<h3>Benefits of introducing products to market</h3>
  • A chance to build a new market that buys the good you sell.
  • A chance to build strong brand loyalty to the new type of products introduced.

Being the first to bring a product to market is therefore very advantageous as it puts one in the dominant market position in a new market thereby guaranteeing profit.

In conclusion, option d is correct.

Find out more on new products at brainly.com/question/25181857.

7 0
3 years ago
Which kind of a person will you be if you prove to be accountable for your actions ?
Inga [223]
I don’t know if your supposed to use vocab or something but it would make you a responsible person in my opinion. Hope this helps:)
7 0
3 years ago
If a potential Latin American customer insists on giving you a tour of the architectural highlights of his city prior to discuss
timama [110]

Answer: The answer is HIGH CONTEXT Culture.

Explanation: High context culture refers to an implicit communication and nonverbal clues. It is a situation whereby a lot of unspoken communication is implicitly transferred during a communication.

In a high context culture, communication that has underlying context and meaning in the message is used. It goes beyond the spoken words but relies on the tone of the message.

A tour round a potential customers high class environment gives a clue of a high context culture as the customer is not verbal stating he is wealthy but implying it non verbally.

5 0
3 years ago
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