1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
diamong [38]
3 years ago
10

Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusivethan the dividend models

and provides expected returns for companies based on aspects besides their historical dividend patterns.
Which of the below is NOT one of these aspects?


A) The company's risk

B) The premium for taking on risk

C) The reward for waiting

D) Stable dividends
Business
2 answers:
Bess [88]3 years ago
8 0

Answer: D. Stable dividends

Explanation:

The dividend model in not inclusive as the pricing model. So what we need is a pricing model that has more inclusive than the dividend model and it can also estimate the expected returns for the stocks with no need for a stable dividend history. The capital asset pricing model (CAPM) has inclusiveness and provides expected returns for companies or firm based on (1) their risk, (2) the reward for waiting and not on their historical dividend patterns and (3) the premium for taking on risk

kipiarov [429]3 years ago
3 0

Answer:

D. Stable dividends

Explanation:

we need a pricing model that is more inclusive than the dividend model in that it can estimate expected returns for stocks without the need for a stable dividend history. The capital asset pricing model is more inclusive and provides expected returns for companies based on (1) their risk, (2) the premium for taking on risk, and (3) the reward for waiting, and not on their historical dividend

You might be interested in
the u.s. department of veterans affairs (va) has undertaken three separate electronic health record system upgrade projects, non
Dovator [93]

The u.s. department of veterans affairs used the waterfall software development approach would likely have benefit  because it offers wide variety to accommodate and collect data.

Software upgradation in an organisation is a bit difficult and managing them individually according to the departments and an integrated software can only accommodate and collect data properly.

The development approach here also signifies a good team of people who can actually apply software development techniques that can easily be used by everyone in the firm.

To learn more about development approach here,

brainly.com/question/4326945

#SPJ1

7 0
1 year ago
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
VLD [36.1K]

Answer:

Chiquita makes an economic profit of $250,000.

5 0
3 years ago
The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of
Oliga [24]

Answer:

The equivalent units of of materials in September = 62,400 units

Explanation:

<em>Equivalent units are useful to apportion cost between work in progress and completed units. They are notional whole units which represent incomplete work</em>

Equivalent Units = Degree of work completed (%) × inventory units

Items                        units            workings           Equivalent units

Completed unit        58,500      58,500× 100%  =     58,500

Closing WIP              6,500        6,500 × 3/5   =       <u>3,900</u>

Total equivalent units of materials                            <u>62,400.</u>

The equivalent units of of materials in September = 62,400 units

5 0
3 years ago
The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution wi
ale4655 [162]

Answer:

A) 200 units

Explanation:

mean daily demand = 20 calculators

standard deviation = 4 calculators

lead time = 9 days

z-critical value (for 95% in-stock probability) = 1.96

normal consumption during lead-time:

= mean demand × lead time

= 20 × 9

= 180 calculators

safety stock = z × SD × √L

                    = 1.96 × 4 × √9

                    = 1.96 × 4 × 3

                    = 23.52 calculators

reorder point = normal consumption + safety stock

                       = 180 + 23.52

                       = 203.52 calculators

3 0
3 years ago
Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shar
kifflom [539]

Answer: Option (a) is correct.

Explanation:

Given that,

Dividend in 2016 = $20,000

Preferred Shares = 400

Par Value of Preferred Stock = 400 × 10 = $4000

Rate of Dividend of Preferred Stock = 5%

(a) Dividend to preferred Shareholders:

= Par Value of Preferred Stock × Rate of Dividend

= $4000  × 5%

= $200

(b) Dividend to Common Shareholders:

= Total Dividend - Dividend to Preferred Shareholders

= $20,000  - $200

= $19,800

6 0
3 years ago
Other questions:
  • A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything
    11·1 answer
  • Workers describe me as realistic
    10·2 answers
  • Jacob and Mason go to a diner that sells burritos for $5 and tacos for $3. They agree to split the lunch bill evenly. Mason choo
    10·1 answer
  • Bergeron is a local manufacturer of off-shore drilling platforms. In 2020, Bergeron entered into a contract to construct a drill
    5·1 answer
  • Based on expectations theory, the term structure of interest rates will be _____ anytime investors believe that interest rates w
    12·1 answer
  • Bob went out with his friends to celebrate his birthday. They went to a bar where they drank copious quantities of alcohol. In t
    11·1 answer
  • Explain fayols 14 principle of management in any organization
    5·1 answer
  • Select the statement below that explains how to use the Income Summary account. Multiple choice question. The Income Summary acc
    14·1 answer
  • Which of the following defines long-term liabilities? Multiple choice question. Long-term liabilities are debts of a business th
    6·1 answer
  • The negative relationship between the quantity of a good, service, or resource and the marginal utility obtained from each addit
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!