Owners equity is $82365 - $70500 which gives $11365. Therefore when you add $70500 + $11365, this would give $82365.
Answer:
.b. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant
TRUE The multi-stage valuation considers different grow rates for the subsequent years
Explanation:
a. Two firms with the same expected free cash flows and growth rates must also have the same value of operations
FALSE as their cost of capital can differ.
c. If a company has a weighted average cost of capital WACC = 12%, and if its free cash flows are expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
FALSE dividend yield is a relationship between price and dividend it doesn't considers the growth of the company, just current values.
d. The value of operations is the present value of all expected future free cash flows, discounted at the free cash flow growth rate
FALSE They are discounted at the difference between return and grow rate
e. The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
FALSE It considers the capital gains as speculations
Answer:
Explanation:
We shall apply the concept of coefficient of variation to know the consistency of data
coefficient of variation
= standard deviation / mean or average
In case of City A
coefficient of variation = 86 / 820
= .1048
In case of City B
coefficient of variation = 75 / 790
= .0949
Since it is less for city B , rent for this city is more consistence or with less of variation
So the conclusion is false.
bad words, bad language, mean insults, talking nasty.
Answer:
Option D
Explanation:
When providing an online service, a company firstly targets to reach the maximum audience. With the increase in reach of audience the chances and feasibility of sales also increases.
But, still there are many customers who desire to have a free trial of service, in order to ensure themselves about the quality and detailed description of service.
In case company agrees to provide free trial, those customers are also satisfied and tend to avail the online service.
Thus, although the sales is directly proportional to the number of visitors, but it would definitely increase by providing the free trial of online service, as ensures more satisfaction in customers.
Final Answer
Option D
