<u>A. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.</u>
This is the false statement.
<u>Explanation</u>:
The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.
The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.
Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.
Answer:
the equivalent units of production is 250 units
Explanation:
The computation of the equivalent units of production is units under FIFO method is shown below:
= Opening inventory balance in units + additional units - ending inventory balance units
= 25 units + 275 units - 50 units
= 250 units
hence, the equivalent units of production is 250 units
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Option (c) is correct.
Explanation:
Given information states that bananas and tangerines are substitute goods. We know that the cross price elasticity of substitute goods is positive which means that there is a positive relationship between the price of one good and the quantity demanded for substitute good.
Therefore, in our case as the price of bananas increases and all the other factors remains constant then as a result the quantity demanded for tangerines increases.
Answer:
Double coincidence of wants - a situation where two individuals each want some good or service that the other can provide
Double coincidence of wants occurs when in a transaction between two or more individuals, each want to obtain the good or service that the other is offering.
Barter - trading one good for another without the use of money
In barter, people trade a good or service for another good or service, without the use of money as medium of exchange. An example of barter is trading a cow for a sheep.
Money - whatever serves society in three functions: medium of exchange, store of value, and unit of account
Money is any good that serves the three purposes of money, store of value to serve as a medium to save or to accumulate wealth, medium of exchange to trade goods and services, and unit of account to measure the value of goods and services under a common guide.
I believe the answer is <span>rent ceilings reduce the quantity and quality of available housing
Rent ceiling refers tot he maximum amount of Rent Payment that could be used in a certain area.
When apartment of owners are required to put rent ceiling, they tend to cover up the profit in any other way (such as reducing the service of the housing or using cheap materials to arrange the furnitures)</span>