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Digiron [165]
3 years ago
9

The constant dividend growth model: a. is more complex than the differential growth model. b. requires the growth period be limi

ted to a set number of years. c. is never used because firms rarely attempt to maintain steady dividend growth. d. can be used to compute a stock price at any point in time. e. most applies to stocks with differential growth rates.
Business
1 answer:
Finger [1]3 years ago
8 0

Answer:

The correct answer is letter "D": can be used to compute a stock price at any point in time.

Explanation:

The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.

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Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of four-year, 12% bonds, with interest payable semiannually, at
Xelga [282]

Answer:

The present of value of the bonds payable is $ 109,893.83  

Explanation:

The present value of the bonds payable is the present of semiannual coupon payments as well as the repayment of face value in year 4.

coupon payments =$100,000*12%*6/12=$6,000

Face value receivable in year 4 is $100,000

Find attached spreadsheet detailing the computation of present value

Download xlsx
8 0
4 years ago
Question 2 of 10
klemol [59]

Answer:

. ' .

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7 0
3 years ago
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Assume that the marginal propensity to consume is 0.75, net exports decline by $10 billion, and government spending increases by
kolezko [41]

Answer: $40 billion

Explanation:

The change will be determined by the value of the Multiplier.

The Multiplier shows how much a change in government spending and exports will impart GDP.

Multiplier =  1 / ( 1 - MPC)

= 1 / ( 1 - 0.75)

= 4

Change in GDP = Multiplier * (Government spending + exports)

= 4 * (20 billion -10 billion)

= 4 * 10

= $40 billion

8 0
3 years ago
__________ unemployment refers to loss of jobs due to a recession or a similar downturn in the economy.
Eva8 [605]

Answer:

Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.

Explanation:

Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.

4 0
3 years ago
Rather than leaving new products to​ chance, a company must carry out strong new product planning and set up a​ systematic, cust
Fed [463]
The answer that best fits the blanks above are IDEA GENERATION, and COMMERCIALIZATION, respectively. In carrying out a powerful new product planning and design, there is a process that should be followed and the process includes eight steps which include idea generation, <span>idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and lastly, commercialization.</span>
7 0
3 years ago
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