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Travka [436]
3 years ago
13

Which of the following is a limitation of the dividend-discount ​model? A. It cannot handle negative growth rates. B. It does no

t consider past earnings and performance. C. It requires that the growth rate always be higher than the required rate of​ return, which is not realistic. D. It requires accurate dividend​ forecasts, which is not possible.
Business
1 answer:
topjm [15]3 years ago
8 0

Answer:

B. It does not consider past earnings and performance.

Explanation:

\frac{divends}{return-growth} = Intrinsic \: Value

The formula use the expected nextyear dividends,

the expected growth on the dividends

and the cost of capital.

It doesn't include anything related to previous earnings and performarce. Like net income, net loss, increase in equity, increase in assets or any other variance about the company's composition of his capital and income.

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3 years ago
Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe
JulsSmile [24]

Answer:

285,000 units

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3 years ago
What characteristics of weak noncovalent interactions enable the assembly, stability, and functions of biomolecules?
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2 years ago
Tom tries to sell his classic car to Victoria for $12,000. Tom tells Victoria, "I paid $12,000 for the car in 1978 and it's wort
gulaghasi [49]

Answer:

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When we are talking about setting a contract aside, it means that the contract is voidable. A voidable contract is valid until one of the parts decides to void it. In this case, if Victoria decides to purchase Tom's car and later discovers that he lied about the price, she can void the contract and return the car to get her money back.

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