1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shusha [124]
4 years ago
9

If you were using the discounted cash flow method to determine the appropriate value of a security, you would want to purchase t

hat security when A) the current market price equals the PV B) the current market price is below the PV C) the rating of the security has just been upgraded D) the current market price is above the PV
Business
1 answer:
saul85 [17]4 years ago
8 0

Answer: The current market price is below the PV

Explanation:

The discounted cash flow method is when the time value of money is being used to value a project, security, company, or an asset.

When the discounted cash flow method is used to determine the appropriate value of a security, it is vital to buy the security when the current market price is below the present value.

You might be interested in
The following information pertains to Sunland Company. Assume that all balance sheet amounts represent average balance figures.
IrinaK [193]

Answer:

the Return On COmmon Stockholders Equity is 16.78%

Explanation:

The computation of the return on the common stockholder equity ratio is shown below;

Return On Common Stockholders Equity is

= (Net Income - Preferred Dividend ) ÷ Average Common Stockholders Equity

=  ($29,500 - $7,600 ) ÷  130,500

= 16.78%

Hence, the Return On COmmon Stockholders Equity is 16.78%

7 0
3 years ago
A moment of truth occurs when employees and ________ have contact. Group of answer choices Skill Customer Product Place
Korvikt [17]

Answer:

Customer.

A moment of truth occurs when employees and the customer have contact.

I hope this helped at all.

5 0
3 years ago
Some high-end retail stores that distribute mail-order catalogs will prominently offer some very high priced goods for sale (for
g100num [7]

Option C

This practice is an example of: anchoring

<h3><u>Explanation:</u></h3>

Anchoring is the effectiveness of unrelated knowledge, such as the acquisition cost of safety, as a reference for estimating or predicting an unknown value of a financial means. Anchoring can be prompt with applicable metrics, such as valuation multiples.

During decision making, anchoring transpires when individuals use a fundamental piece of information to obtain consequent judgments. Once an anchor is established, other judgments are formed by adjusting incessantly from that anchor, and there is a preference proceeding evaluating other information encompassing the anchor.

3 0
3 years ago
Four thousand bonds with a face value of $1,000 each, are sold at 104. The entry to record the issuance is Group of answer choic
Arisa [49]

Answer:

Dr Cash 4,160,000

Cr Premium on Bonds Payable 160,000

Cr Bonds Payable 4,000,000

Explanation:

Preparation of the entry to record the issuance

Based on the information given The entry to record the issuance is:

Dr Cash $4,160,000

[(4000*1000)*104%]

Cr Premium on Bonds Payable $160,000

($4,160,000-$4,000,000)

Cr Bonds Payable $4,000,000

(4000*1000)

(To record the issuance)

4 0
3 years ago
During the taking of its physical inventory, a company inadvertently counted its inventory as $98,000 instead of the correct amo
ivanzaharov [21]

Answer:

The misstatement would result in the overstatement of assets by $9,000 and also an overstatement of stockholders equity by the same amount.

Explanation:

When the balance of year end inventory is overstated, the cost of goods sold will be understated and this will result in an overstatement of the net income (and by extension, owners equity).

Given that a company inadvertently counted its inventory as $98,000 instead of the correct amount of $89,000

Amount overstated = $98,000 - $89,000

= $9,000

3 0
4 years ago
Other questions:
  • Relationships between businesses and among nations:
    10·1 answer
  • Current information for the Healey Company follows:
    13·1 answer
  • A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and mo
    9·1 answer
  • Keisha owns a house worth $275,000 with a mortgage of $195,000. She owns a car worth $12,000 and has $7,500 in car loans. She ha
    13·2 answers
  • Armando, CEO of a successful medical supply company, is constantly reading press releases, ads, and news articles about his comp
    9·1 answer
  • Suppose disposable income increases by $ 2,000 . As a result, consumption increases by $ 1,500 . Answer the questions based on t
    6·1 answer
  • Johanna agrees to purchase Jessie’s land so that she can build a golf course. They write a contract, and Johanna transfers the d
    15·1 answer
  • Actual indirect materials costs$11,800 $6,700 Actual indirect labor costs 55,600 45,900 Other overhead costs 16,000 49,900 Overh
    5·1 answer
  • Douglas, Inc., employs a normal costing system. The following information pertains to the year just ended. Total manufacturing c
    11·1 answer
  • bramble corps accounting records reflect the following inventories: how much is the total manufacturing costs inccured during 20
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!