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Naya [18.7K]
3 years ago
14

he value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of two elements

: (1) the dividends the investor receives each year while he or she holds the stock and (2) the price received when the stock is sold. The final price includes the original price paid plus an expected capital gain. True or false
Business
1 answer:
nekit [7.7K]3 years ago
3 0

Answer:

TRUE

Explanation:

Using the Gordon Growth Model,  we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.

Price per share is found to be D(1) / (r - g)  

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.

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Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR), but not in the min
Elan Coil [88]

Answer: D. Combining and individual fund financial statements.

Explanation: Annual financial Report, the most common of this set of reports issued are general purpose financial statements that include income statement, balance sheet, retain earnings and statement of cash flow. It is a financial statement of 12 consecutive months in a year.

There are items that will be include such as Combining and individual fund financial statements.

7 0
3 years ago
Before you buy a car you need to know your need and your​
olganol [36]
<h2>Before you buy a car you need to know your need and your <u>budget</u></h2>

Explanation:

There are many things associated with the car:

1. Test drive: You can do a test drive check whether the car suits your style and it is driver-friendly and also whether it is worth for the money

2. Check for credit score: You can check your credit score to save your money though not huge but a little

3. Compare prices: Compare the prices of the car with other shops and choose the best one.

4. Do a review of repair records: It is better to check the review so that we can assess the life time of the car and in tandem with the amount of the car.

Last but not the least, you must understand your need and the budget because these are two essential things which comes in front of you when you think about buying a car.

3 0
3 years ago
Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a
kiruha [24]

Answer: A. Identify issues.

Explanation: Hisaoki's company failed to identify issues, because they never considered problem might arise but it did arises.

In identifying issues one must be clear what the problem is and plan on how to solve them, analyzing the problem is important when identifying issues. This help you to be about the situation when there is problem.

3 0
3 years ago
Your newest coworker is not as productive as other members of your team. You and your coworkers have to work harder to make up f
BaLLatris [955]

Answer:

The correct answer would be option C.

Explanation:

If there is a new co worker hired in my office, and its her beginning days, and I, along with other team members see that she is not as productive as other members of the team are, and we all have to work more and harder to make up for her work. So i would preferably give her advice and tips for how to get things done correctly and efficiently. I would not like to get her out of the office, rather i will try to make her understand the things as soon as possible and give her tips to increase her work efficiency. But if the problem continues, and I believe that she will not be able to cope up with us, then i will talk to the supervisor and suggest him that she might not be the best role for us. But i will go with option C.

6 0
3 years ago
Read 2 more answers
On March 1, 2020, the Teal Company received a $45,000 payment for annual magazine subscriptions (the subscriptions run from the
bulgar [2K]

Answer:

The company has incorrectly credited the sales revenue account at the time of the receipt of payment. So, the  journal entry to record the transaction is as follows:

Date               Particulars                            Debit          Credit

March 1, 20    Sales Revenue A/c           $45,000

                             To Unearned Sales Revenue A/c   $45,000

                       (To record Unearned sales revenue)

5 0
3 years ago
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