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
satela [25.4K]
3 years ago
6

To estimate the value of a nonconstant growth stock, we can estimate the value of each dividend during the period of nonconstant

growth, find the PVs of these dividends, find the value of the stock at the horizon date, find the PV of the horizon value, and then sum these PVs to find the value of the stock today. True or false
Business
1 answer:
garri49 [273]3 years ago
3 0

Answer:

The correct answer is True.

Explanation:

The Gordon growth model is a method of valuing a company's share price, using constant growth and discounting the value of future dividends today. Gordon Growth is often known by its English name.

It is a dividend discount model that assumes that the growths that the company will experience are constant. It is based on the theory that the price of a share should be equal to the price of the dividends that the company is going to pay, discounted to its net present value.

If the share price in the market is less than the result obtained by the discounted dividend model, the share is undervalued and therefore, it is recommended to buy. If, on the other hand, the market price is higher than that of the model, it is understood that the share price is too high.

You might be interested in
The inheritance pattern for red-green color blindness is different for males compared to females. Red-green color blindness is m
Komok [63]

Answer:

The gene that causes color blindness is linked to the X chromosome and it is much more frequent in males than females because females have two X chromosomes. So for a female to suffer from color blindness, both of her X chromosomes should carry the genetic disorder.

7 0
3 years ago
What is cash flow when funding in a business?<br> ANSWER CORRECTLY NO LINKS!
Luda [366]

Answer:

reality income

Explanation:

aaaaaaaa

3 0
2 years ago
Read 2 more answers
The difference between slope and elasticity is that slope _________.a. is a ratio of two changes, and elasticity is a ratio of t
jekas [21]

Answer:

c. measures changes in quantity demanded more accurately than elasticity.

Explanation:

Base on the scenario been described in the question, slope measures changes in quantity demanded very accurately compared to elasticity. The main for this reason is that m, slope and elasticity are not the same concepts. Slope evaluates the

flatness or steepness of a line in terms of the evaluating units for price and quantity, while elasticity evaluates the relative response of quantity to changes in price.

4 0
3 years ago
Read 2 more answers
Which of these savings/investing options has the highest risk
Pavlova-9 [17]

Answer:

STOCKS

Explanation:

US government bond is a government security, therefore the government print more money to pay those who invest in it.

In addition bondholders are creditors of a corporation.

Stockholders, are part owners of a company. In case of bankruptcy, bondholders are given priority.

Savings accounts are protected by the Federal Deposit Insurance Corporation (FDIC) provisions.

Money market accounts are a safe investment because they are insured by the FDIC.

Therefore the investment option that has the highest risk is stocks.

7 0
4 years ago
This is my fav HALO: 5 Assassination
Zina [86]

Answer:

No Halo 3 is.

Explanation:

Halo 3 is much better even if you haven't played it. It is a xbox 360 game and came out on September 25, 2007.

6 0
4 years ago
Other questions:
  • Brenda is a new employee orientation trainer for a global corporation with subsidiaries all over the world. She needs to convey
    9·1 answer
  • Drag the tiles to the correct boxes to complete the pairs.
    7·2 answers
  • Primo Industries collected $105,000 from customers in 2019. Of the amount collected, $25,000 was for services performed in 2018.
    14·1 answer
  • A website that sells wedding dresses targets ads to (1) women (2) ages 22 to 35 (3) actively searching for a wedding dress (4) w
    9·2 answers
  • Do you feel that there is a difference in the quality of a private brand versus a national brand? Why or why not?
    8·1 answer
  • State whether each of the following statements is true or false.
    14·1 answer
  • A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:
    11·1 answer
  • Innova uses 1,100 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufac
    8·1 answer
  • Roy’s Dairy purchases land for $200,000, paying $50,000 and financing the rest with a bank loan.
    8·1 answer
  • Returning workers confront creepy time capsules of pre-pandemic life
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!