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ludmilkaskok [199]
3 years ago
14

The dividend growth model: Multiple Choice is only as reliable as the estimated rate of growth can only be used if historical di

vidend information is available. applies only when a company is currently paying dividends considers the risk that future dividends may vary from their estimated values. is based solely on historical dividend information
Business
2 answers:
suter [353]3 years ago
5 0

Answer:

The correct answer is letter "A": is only as reliable as the estimated rate of growth.

Explanation:

The dividend growth model, also known as the Gordon Growth Model or GGM, is used to calculate the intrinsic value of a stock today, based on the stock's expected future dividends. The model is most effective when used for large, stable companies in mature markets that have a predictable rate of dividend growth. However, the model ignores factors that affect the market price of a stock such as new products, competition, and investor sentiment.

ddd [48]3 years ago
3 0

Answer: The correct answer is "is only as reliable as the estimated rate of growth".

Explanation: The dividend growth model: is only as reliable as the estimated rate of growth because the growth model is a method to assess the price of a company's stock using constant growth and discounting the value of future dividends today.

<u>This happens because it assumes that the growth that the company will experience is constant.</u>

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A firm offers terms of 1.6/10, net 60. a. What effective annual interest rate does the firm earn when a customer does not take t
leva [86]

Answer:

case 1: 12.49%

case 2: 21.20%

case 3:   9.48%

case 4:  13.98%

Explanation:

the rate stands for the period between the last day of the discount and the last day the invoice can be cancelled at nominal.

we equalize this with a rate which capitalize annually and solve for this rate:

(1+discount)^{(net-d_t)/365} =1+r_e\\ r_e = \sqrt[(net-d_t)/365]{1+discount}

case 1:

r_e = \sqrt[(60-10)/365]{1+0.016}

re = 0.1249 = 12.49%

case 2:

r_e = \sqrt[(60-10)/365]{1+0.026}

re = 0.2120 = 21.20%

case 3:

r_e = \sqrt[(75-10)/365]{1+0.016}

re = 0.0948 = 9.48%

case 4:

r_e = \sqrt[(60-15)/365]{1+0.016}

re = 0.13977 = 13.98%

3 0
3 years ago
1. Purposeful behavior suggests that: A. everyone will make identical choices. B. resource availability exceeds economic wants.
White raven [17]
The answer is C. Purose full behavior states that people make decisions with a desired outcome in mind, taking all the losses and benefits into consideration.
5 0
3 years ago
The Petit Chef Co. has 10.8 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments
Fantom [35]

Answer:

The yield to maturity is 8.50%

Explanation:

The computation of the  yield to maturity is shown below:

Given that

NPER = 8

PMT = $1,000 × 10.8% = $108

PV = $1,129.70

FV = $1,000

The formula is shown below:

= RATE(NPER,PMT,-PV,fV)

After applying the above formula, the yield to maturity is 8.50%

And, the same is to be considered

hence, the yield to maturity is 8.50%

6 0
3 years ago
Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportati
Rzqust [24]

Answer:

(1) (i) 9.16 times

(ii) 39.845 days

(2) Yes

Explanation:

1. Net credit sales = 35,497

Average net receivables = (3,391 + 4,359) ÷ 2

                                          = 3,875

So,

Receivables turnover ratio = Sales revenue (2022) ÷ Average net receivables

                                             = 35,497 ÷ 3,875

                                             = 9.16 times

However I don't know how they got the net receivables figure, because:

Gross receivable - ADA = net receivable,

but it doesn't work out like this above, so since the net receivable is given, I just used it as given.

Average collection period = 365 days ÷ Receivables turnover

                                            = 365 ÷ 9.16

                                            = 39.845 days

2. In order for something to be "material" it must be important.

Accounts Receivable are part of current assets and they are very important, so the answer is yes.

6 0
3 years ago
You are the first medically trained person to arrive at the scene of a shooting. law enforcement personnel have secured the scen
n200080 [17]
Stay with the stay with the person till the paramedic unit arrives. Stop any external bleeding with tea towels or a shirt or whatever.
3 0
3 years ago
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