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Mariulka [41]
3 years ago
11

The constant growth DCF model used to evaluate the prices of common stocks is conceptually similar to the model used to find the

price of perpetual preferred stock or other perpetuities.A. TrueB. False
Business
1 answer:
vampirchik [111]3 years ago
4 0

Answer:

True

Explanation:

The perpetuity formula used to determine the value of stock is:

stock value = <u>dividend       </u>  

                      interest rate

The discounted cash flow formula used to determine the value of a project or a revenue generating asset is:

present value = <u>cash flow       </u>  

                          discount rate

The cash flow is equivalent to the dividend, and the discount rate is equivalent to the interest rate.

You might be interested in
A manager is hired by a start-up for her demonstrated ability to think strategically and make broad-based decisions that serve t
STatiana [176]

Answer:

Conceptual Skills

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question the manager was most likely hired for her Conceptual Skills. This is the ability that an individual may possess to analyze hypothetical situations in order to gain valuable information and develop strategies. Which allows that individual to make certain big decisions in benefit of the company.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the N
Andrew [12]

Answer:

Alphabet stock; Acme Investing; New York Stock Exchange.

Explanation:

Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, Alphabet stock is a financial instrument, Acme Investing is a financial institution, and New York Stock Exchange represents a financial market.

Financial instruments can be defined as assets which are having monetary value or used to record a monetary transaction. Financial instruments are generally classified on the basis of their risks, maturity, issuers etc. Some examples of financial instruments are stocks, treasury bills, commercial paper, money market mutual fund, certificate of deposits, corporate bonds etc. The market where these financial instruments (securities and derivatives) are being traded at a low transaction rate is referred to as the financial market.

Furthermore, financial institutions can be defined as a business firm or company that is involved in the business of trading financial instruments.

6 0
4 years ago
Cho owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in her
Ber [7]

Answer:

Shoe leather costs

Explanation:

(A) Shoe leather costs

(B) Inflation can be defined as the persistent rise in the prices of goods and services. Shoe leather costs can be defined as the costs of time and effort that are encountered by individuals while trying to prevent the effect of inflation. It describes the costs incurred by individuals that visits the bank often inorder to withdraw money needed to purchase goods and services during the time of inflation.

Shoe leather cost arises during the period of high inflation, individuals do not hold large amount of cash because there will be a reduction in the value of the money.

5 0
4 years ago
During a recent​ month, Company planned to provide cleaning services to customers for per hour. Each job was expected to take ho
givi [52]

Answer: B.  $1,050  more than expected.

Explanation:

The company originally planned to have revenue resulting from 30 customers and charging $30 for an estimated 33 hours.

Estimated revenue was;

= 30 * 30 * 3

= $2,700

However, in actuality, they sold to 20 more customers than estimated but only spent 2.5 hours each.

Number of customers = 30 + 20

= 50 customers

Actual revenue

= 50 * 30 * 2.5

= $3,750

Difference is;

= 3,750 - 2,700

= $1,050 more

7 0
4 years ago
An individual employee’s job performance is measured as
andriy [413]

Answer:

An individual employee’s job performance is measured as skills and appreciation.

8 0
3 years ago
Read 2 more answers
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