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asambeis [7]
3 years ago
12

Which of the following statements is correct?

Business
1 answer:
kherson [118]3 years ago
8 0

Answer:

c. There is an "opportunity cost" associated with using reinvested earnings, hence they are not "free."

Explanation:

When the reinvested earnings are invested that is basically the earnings associated with reinvestment would earn the same like that earned by the investment if not withdrawn and invested.

Let us say for example: Amount invested = $1,000

Return on such investment = $100

Now if such earnings are also reinvested then

Earnings = $110

Now if this $110 is used rather than investing again, then there is the opportunity cost of earning $11 on such reinvestment.

Thus, statement c is correct.

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Man it keeps recomending your questions XD its Human capital
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You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid
Ivan

Answer:

$28.57

Explanation:

Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.

Therefore the Dividend that is to be paid next year will be:

$2Growth rates

5 %Rates of return

12% Return on Investment

Formular for the calculation of current price of the stock = D1/(r-g)

Where:

D1=2%

r=12%

g=6%

Hence:

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=2/0.07

=$28.57

Therefore the amount I should be prepared to pay for the stock today will be $28.57

4 0
2 years ago
Your team is consulting with a local manufacturing company that has 1,200 employees and is the third largest employer in the are
Vedmedyk [2.9K]

Answer:

how do you want me to answer this telll me how and i will answer it full as best to my ability

Explanation:

8 0
2 years ago
Forever Jewelers uses the perpetual inventory system. On April​ 2, Forever sold merchandise with a cost of $ 1 comma 500$1,500
Tema [17]

Answer:

Accounts Receivable $8,820

                   To Sales Revenue $8,820

Explanation:

The journal entry to record the sales revenue is shown below:

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      To Sales revenue A/c $8,820

(Being merchandise sold on credit basis)

For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue

The computation of sales revenue is shown below:

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This is the answer but the same is not provided in the given options

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2 years ago
HaAaAiii frRiIieEenNds wWaAanNnAaaA cCcCcHhHaAaAtTtT pweeeaaase
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yeah sure what do you want to ch.At about

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because i don't really care what we talk abt

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2 years ago
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