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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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4.
valentina_108 [34]
<span>Salary is the correct answer. </span>
3 0
3 years ago
Elc inc. is an electronic appliances manufacturer that has many strategic business units (sbus), among which, television and com
Sedbober [7]

Answer:

The answer is multi-divisional structure.

Explanation:

A company employing multi-divisional structure would usually function as a parent company that has many business units under it operating different business sectors. This is clearly the case of Elc Inc., since it both manufactures televisions and computers. The fact that both businesses share the same budget shows that the two business units are still operating in the same company.

4 0
3 years ago
The degree to which team members interact with and rely on other team members for the information, materials, and resources need
Mariulka [41]

Answer:

task interdependence is the correct answer.

Explanation:

The degree to which team members interact with and rely on other team members for the information, materials, and resources needed to accomplish work for the team is known as task interdependence.

The goal of task interdependence  is to alleviate the problems that arise when various assignments overlap and become the potential for disagreement.

Task interdependence within the team is an extent where the team members should communicate with each other to achieve their responsibilities and tasks.

Knowledge of task interdependence benefits company owners grasps how various branches and team members depend on the performance of each other.

5 0
3 years ago
Which of the following is not a business-to-business (B2B) market.
sleet_krkn [62]

Answer:

I don't know the exact answer but I guess it will be option (B) process materials

4 0
2 years ago
The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variab
Solnce55 [7]

Answer:

Month. Machine Hours. Total costs

January. 1,800 $21,500

February. 2,900 $23,200

March. 1,000. $19,750

April. 2,400. $21,000

May. 3,400. $23,900

High-Low method = 23, 900 + 21,000

= 44,900

5 0
3 years ago
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