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3 years ago

5

A decrease in which of the following will increase the current value of a stock according to the dividend growth model?

1 answer:

chubhunter [2.5K]3 years ago

7 0

I had to look for the options and here is my answer:

According to the Dividend Growth Model, a decline in the DISCOUNT RATE will increase the stock's current value. The Dividend Growth Model, or also known as the <span>Gordon </span><span>Growth Model, is the basis in the calculation of the intrinsic value of a stock not including any conditions of the current market.</span>

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Stock Company has 2,000 units in beginning work in process inventory, 20% complete as to conversion costs, 23,000 units transfer

ss7ja [257]

Answer:

B. 26,000, 24,000.

Explanation:

Stock Company

Equivalent units

Particulars Units % of Completion Equivalent Units

Mat. Conversion Mat. Conversion

Transferred Out 23000 100 100 23000 23000

<u>Ending WIP 3000 100 331/3% 3000 999.9= 1000</u>

<u>Total Equivalent units 26000 24000</u>

<u />

The Equivalent units can be calculated either by adding the units transferred out and ending WIP or by adding beginning WIP and units started.

Equivalent units for materials 26000

and Equivalent units for conversion are: 24000

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3 years ago

Which situation is better for saving money in a CD (certificate of deposit): the purchasing a car or for use in an emergency? Ex

erica [24]

Answer:

Emergency

Explanation:

Always have extra money for problems that arise.

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3 years ago

Cameron and Drake are making plans for Saturday. Cameron wants to go bowling. Drake does not bowl well and prefers to shoot hoop

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Compromising
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3 years ago

Read 2 more answers

A physical count of merchandise inventory on July 30 reveals that there are 180 units on hand. Using the FIFO inventory method,

Nookie1986 [14]

Answer: $3,708

Explanation:

Using FIFO means that the earlier goods are sold before the later ones so the closing inventory would have the latest goods purchased.

If there are 180 units on hand, the cost would be:

54 units purchased at $22
(180 - 54) units purchased at $20

Closing inventory is:

= (54 * 22) + ( (180 - 54) * 20)

= (54 * 22) + ( 126 * 20)

= $3,708

8 0

3 years ago

What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that curre

aleksklad [387]

Answer:

(a) 6.206%

(b) 6.54%

(c) 6.58%

Explanation:

Given that,

Commercial paper value = $3 million

Currently selling at 97.50 percent of its face value.

Days from maturity = 145

(a) Discount yield:

= $\frac{(Face\ value - Current\ price)}{Face\ value}\times\frac{360}{Days\ in\ maturity}$

= $\frac{(100 - 97.50)}{100}\times\frac{360}{145}$

= 0.025 × 2.4827

= 0.06206 or 6.206%

(b) Bond equivalent yield:

= $\frac{(Face\ value - Current\ price)}{Current\ price}\times\frac{365}{Days\ in\ maturity}$

= $\frac{(100 - 97.50)}{97.50}\times\frac{365}{145}$

= 0.026 × 2.52

= 0.0654 or 6.54%

(c) Effective annual return:

Future value = Present value × $(1+r)^{n}$

$100 = $97.50 × $(1+r)^{\frac{145}{365}}$

$(\frac{100}{97.50})^{\frac{365}{145}} = 1+r$

1.0658 = 1 + r

0.0658 or 6.58% = r

6 0

2 years ago