Answer:
B
Explanation:
A. the same amount to every investor regardless of their desired rate of return.
B. the present value of the future income which the stock generates.
C. an amount computed as the next annual dividend divided by the market rate of return.
D. the same amount as any other stock that pays the same current dividendand has the same required rate of return.
the dividend models are used to determine the value of a stock. It is assumed that the value of the stock is equal to the present value of the cash flows or dividends of the stock
The intrinsic value of a stock can be calculated using various dividend models. some of dividend growth models include:
1. The Gordon constant growth dividend model
2. The two-stage dividend growth model
3. The H-model
4. The three-stage dividend growth model
For example, if the dividend of a share in year 1 and 2 is 50 respectively and the discount rate is 10, the present value of the firm =
50 / (1.1) + 50 / (1.1^2) = 86.78
Answer:
1. Dynamic
2. Number of factors that are changing
3. Complex
4. Pace of change
5. Abundant
6. Low
7. Easy
Answer:
The correct answer is letter "A": Price uncertainty but not execution uncertainty.
Explanation:
When talking about trading orders, a market order is executed whether to buy or sell a security at market price. The market order does not follow the security's price at the bid or ask, it usually follows the last price at which the security was sold. Thus, that <em>price is always uncertain.</em>
The benefit of market order relies on the execution. Traders will not have to wait until another trader is willing to buy or sell at their desired level. The <em>market order will execute the order almost automatically</em> at the price the market has available.
Answer: Option A
Explanation: Mutual funds are introduced by the financial institutions in the market and are not financial institutions themselves.
These funds collect money from various different investors and pool them together to invest in securities of different companies. These funds are managed by the investment professionals who receive both fixed and variable fees depending on the performance of portfolio.
The portfolio is divided into shares and such shares are then sold into the stock market.
Hence from the above we can conclude that option A.
Answer:
Yes, In situation of high risk credit will create more problem due to bankruptcy.
Explanation:
I Think if business will buy more credit in times of high risk then business will end up in stage of bankcruptcy because in that situation business will making poor profits and no revenue so it won't be able to pay back debt.
