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Alex787 [66]
4 years ago
13

What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rat

e, and the applicable discount rate?a. zero growthb. dividend growthc. capital pricingd. earnings capitalizatione. discount dividend
Business
1 answer:
kotykmax [81]4 years ago
5 0

Answer:

The correct answer is letter "B": dividend growth.

Explanation:

A dividend is a cash distributed by a company to its shareholders. The dividend growth is the rate that measures the increase in a dividend given a certain period, typically calculated in the term of one year. The dividend growth is also considered a gauge that may predict the future continuation of the behavior of profits within a company. In that sense, it can influence the current price of a stock and the discount rate as well.

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Brandon, an analyst at Agency A, rents a car at $40 per day. Due to a rental company discount, if a car is rented for 4 or more
4vir4ik [10]

Answer:

62.5%

Explanation:

In this example, Brandon rented the car for 6 consecutive days. This means that he was able to take advantage of the promotion. Therefore, he only paid for five days (got one day free) at a rate of $30 per day (as opposed to $40). Therefore, he paid:

$30 * 5 = 150

On the other hand, Whitney rented a car for three days. She did not qualify for the discount, which means that she paid for all her days, at a rate of $40 per day. Therefore, she paid:

$40 * 3 = 120

To obtain the average daily rate of each person, we would need to divide this final rate by the number of days each person used a car. That would look like this:

Brandon: $150 / 6 = $25

Whitney: $120 / 3 = $40

Therefore, when comparing these two numbers, we see that the average daily rate paid by Brandon is 62.5% percentage of the average daily rate paid by Whitney.

6 0
3 years ago
Which of the following statements accurately brings out the difference between a perfectly competitive industry and a monopolist
rewona [7]

Answer:

its d

Explanation:

industry has the freedom to raise prices

5 0
4 years ago
Alpha Company manufactures computers. On July 1, Alpha had $75,000 of materials in inventory. During the month of July, the comp
Zigmanuir [339]

Answer:

$352,000

Explanation:

Alpha Company reported the following figures:

Inventory on July 1 = $75,000

Inventory on July 31 = $43,000

Purchases for the month = $320,000

Cost of Direct material used = Inventory on July 1 + Purchases for the month - Inventory on July 31

Cost of Direct material used = $75,000 + $320,000 - $43,000

Cost of Direct material used = $352,000

6 0
3 years ago
Describe the change in aggregate supply that should result from each of the following changes in determinants. Assume that nothi
Sergio [31]

Answer: Please refer to Explanation

Explanation:

(a) A rise in the average price of inputs

DECREASE because it is now less profitable for suppliers so they will produce less.

(b) An increase in worker productivity;

INCREASE because total cost is reduced as more goods are being produced per cost.

(c) Government antipollution regulations become stricter.

DECREASE (unless the increase in antipollution device production outweighs the decline in production caused by the increased cost of the regulations)

(d) A new subsidy program is enacted for new business investment in productive equipment.

INCREASE as the subsidy program will lower the cost of inputs so Suppliers will produce more goods.

(e) Energy prices decline.

INCREASE as there again would be Lower Input Costs thus pushing Suppliers to produce more.

6 0
4 years ago
Suppose that with a budget of $130, Deborah spends $78 on sushi and $52 on bagels when sushi costs $2 per piece and bagels cost
STatiana [176]

Her budget is $130

If she buys the sushi and bagels before the price drops, she will spend

exactly $130.

If she buys the sushi and bagels after the price drops, she will spend $100.

If she buys it together, her price will be $230

Idk if thats what your asking because there is no question

-IronWolfX

4 0
3 years ago
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