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Fantom [35]
3 years ago
15

Discuss similarities and differences between the discounted dividend and corporate valuation models

Business
1 answer:
kotykmax [81]3 years ago
6 0
Dividend discount model (DDM) is used in valuing stocks of a company with basing on the value of the future net present dividends. It rests on the assumption that the stock's worth is equivalent to future dividends including discounted values of the present. Corporation valuation models on the other hand, is for loan qualifications, setting prices upon selling one's company.
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Suppose Will's 2009 food expenditures in 2011 dollars amount to $5,750. Then the inflation rate for 2011 is about _____.
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Answer:

the inflation rate was 8 percent and the nominal interest rate was 11 percent

Explanation:

Nominal interest rate is the rate without considering the inflation.

7 0
4 years ago
A Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per share at the end of next yea
g100num [7]

Answer:

$38.85

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The computation of the maximum price would be willing to pay is shown below:

Current price = Future dividend × Present value of discount factor (rate of interest , time period)

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3 years ago
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4 0
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What is the main motive behind dealer incentives?
Aliun [14]
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6 0
4 years ago
The critical ways that firms can obtain a sustainable competitive advantage are/is called the _____ for that industry.
Daniel [21]

The critical ways that firms can obtain a sustainable competitive advantage are/is called the barriers to entry for that industry.

<h3>What is competitive advantage?</h3>

Competitive advantages refers to those economic variables, which place a company above its competitors whereas it is produces similar goods at a cheaper rate, compared to its rival.

It is the ability of a company to produce goods more efficiently than its competitors, which leads to greater profit margins.

Examples of competitive advantage are:

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Learn more about competitive advantage here: brainly.com/question/26514848

#SPJ1

6 0
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