Answer:
B. Cash in Bank account (debit) Interest on Loan account credit)
Answer:
when valuing companies with temporarily high growth rates.
Explanation:
Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).
These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.
If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.
Multistage dividend growth models
It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.
The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.
The transaction of the issuance of notes payable for borrowing will be classified in cash flows statement as a Financing activities.
Under the statement of Cash-flow, the financing activities section records all transactions that involves long-term liabilities, owner's equity etc.
- Hence, the transaction of the issuance of notes payable for borrowing will be classified in cash flows statement as a Financing activities.
Therefore, the Option C is correct.
Read more about Cash-flow
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Answer:
D. households demand goods and services that are supplied by firms, while supplying resources that are demanded by firms.
Explanation:
The circular flow of income shows how money moves in an economy. Firms pay households for resources needed in production. The money flows back to firms when households demands goods and services from firms.
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Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
