Answer:
e. None of the above assumptions would invalidate the model
Explanation:
Incomplete question <em>"The constant growth model is given below: P0 = [D0(1 + g)]/[(rs - g)]"</em>
<em />
According to dividend discount model,
P0 = D1/(R-G)
D1 - Dividend at t =1
R - Required rate
G - Growth rate
This would be invalid if R < G. In other words, Dividend growth model will be invalid in only one situation, that is, when growth rate is more than require return. In this situation growth model cannot be used.
Answer:
c. Emphasis on ethics
Explanation:
Sean has been tasked with developing a ethical mission statement with a view of reassuring customers on predatory lending practices.
This is a renewed emphasis on the ethics of the company and by so doing it will reassure the company is aware of the ethical practice in this regard and that they are pledging to act ethically.
Ethics is defined as the process of systemising and recommending concepts of right and wrong. It is also called moral philosophy.
Answer:
So we can offer for the house $180119.95
Explanation:
Monthly income =$4000
Monthly mortgage payment allowed (P)= 25% of 4000= $1000
Interest rate per month (i)= 0.5%
Number of months in total (n)= 30*12= 360
Maximum loan affordable = P*(1-(1/(1+i)^n))/i
=1000*(1-(1/(1+0.5%)^360))/0.5%
=$166791.61
Closing cost is 4% of loan value = 166791.61*4% =$6671.66
Balance Amount left for down payment = 20000-6671.66
=$13328.34
It means we can pay $6671.66 for closing cost of Loan and $13328.34 for down payment.
Cost of house paid maximum = Down payment + Affordable loan
=13328.34+166791.61
=$180119.95
So we can offer for the house $180119.95
Answer:
Answer 1 - increment in money due will go under working exercises and $4000 will be appeared in negative there since it will decrease the money balance
Answer 2 - issuance of preferred stock will go under financing exercises and since they are giving offers so income will increment by $115 × 10000 = $1150000
Answer - 3 For devaluation Because we start setting up the announcement of incomes utilizing the overall gain figure taken from the salary explanation, we have to alter the net gain figure with the goal that it isn't diminished by Depreciation Expense. To do this, we include back the measure of the Depreciation Expense. So we have to add $14000 to net gain of $90000
For bond premium amortization, its recorded in the working exercises area of the announcement of incomes. Under the roundabout strategy, the amortization of security premium is deducted from net gain since it decreases premium cost and, along these lines, expands net gain without a real money inflow.
Answer - 4 Acquisition of property will go under contributing activities so in the event that we purchase more place where there is $20000, at that point it will lessen the money by $20000
Answer:
Apple contribution margin
$ 300 per unit
Apple Break even point:
$ 120 units
Google contribution margin
$ 200
BEP
$ 50
Explanation:
<em><u>Where:</u></em>
Apple contribution margin
550 - 250 = 300 per unit
Apple Break even point:
36,000 / 300 = 120 units
Google contribution margin
470 - 270 = 200
BEP
10,000 / 200 = 50
