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3 years ago

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

1 answer:

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 Gordon Growth Model, is the basis in the calculation of the intrinsic value of a stock not including any conditions of the current market.

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The government's too-big-to-fail policy applies to: Group of answer choices large corporate payroll accounts held by some banks

gtnhenbr [62]

Answer:

large banks whose failure would start a widespread panic in the financial system.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.

Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

Hence, the government's too-big-to-fail policy applies to large banks whose failure would start a widespread panic in the financial system.

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3 years ago

The advantages of personal financial planning include:

den301095 [7]

Answer:

d. All of these

Explanation:

Personal financing is the process of organizing and managing an individual or household's income to achieve set financial goals. It involves managing personal finance activities such as income, expenditure, savings, and investments. The primary objective of personal finance is to assist individuals maximize their current incomes and make future plans. As a result, they can achieve both short term and long term goals.

7 0

3 years ago

"Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer

sweet-ann [11.9K]

Answer:

Explanation:

a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4

price P=15-Q=10-4=6

profit=6*3-TC=18-(3+4+0.5*4^2)=3

b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.

c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.

d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.

7 0

3 years ago

In social media, negative comments and complaints can illuminate unknown brand flaws.

marysya [2.9K]

Yes it is true that in social media, negative comments and complaints can illuminate unknown brand flaws. Social media it is any tool or service that uses the Internet to facilitate conversations, offer more one-to-one ways to meet consumers. the process of knowing and assessing what is being said about a company, individual, product, or brand; Negative comments and complaints are of particular importance, both because they can illuminate unknown brand flaws is Social media monitoring.

7 0

3 years ago

Read 2 more answers

"Makers Corp. had additions to retained earnings for the year just ended of $213,000. The firm paid out $183,000 in cash dividen

yuradex [85]

Answer:

Dividends per share is $1.66

Book value per share is $44.36

Market-to-book ratio is 1.42

Price-earnings ratio is 32.54

Price-sales ratio is 1.97

Explanation:

1 ) What are dividends per share?

Dividends per share = cash dividends/ number of shares = $183,000/ 110,000 = $1.66

2) What is the book value per share?

Book value per share = total equity/ number of shares = $4,880,000 / 110,000 = $44.36

3) If the stock currently sells for $63 per share, what is the market-to-book ratio?

Market-to-book ratio = $63/ $44.36 = 1.42

4) What is the price-earnings ratio?

The price of Makers Corp. = market price * number of shares = $63* 110,000 = $6,930,000

Price-earnings ratio = $693,000/ $213,000 = 32.54

5) If the company had sales of $3.52 million, what is the price-sales ratio?

Price-sales ratio = market price/ sales = $6,930,000/ $3,520,000 = 1.97

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3 years ago