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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.

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What positive contributions can labor unions make to organizations pursuing the loyal soldier hr strategy?
Artyom0805 [142]

Positive contributions can labor unions make to organizations pursuing the loyal soldier hr strategy is that the benefits of a stable workforce help maintain high quality.

It helps in the cost reduction by the stable labor force.

It also helps in making the low cost product at a very good quality.

Organisations which are pursuing loyal soldier HR strategy always  try to retain employees by providing them with a sense and feel of security which  persuades them to work for some lower wages than they could be able to earn in competing firms.

Such organizations try to reduce cost by offering job security in place of high wages.

To know more about the loyal soldier hr strategy here:

brainly.com/question/7270549

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4 0
2 years ago
what are the documents required by department of trade and industry when registering for a private company
meriva

Social security for employee profiling, insurances, and other employee and company benefits

Business permit, so that your business is legal and has passed through the scrutiny of safety and reliability

<span>Tax identification  to ensure that in every profit you gain, you will be giving a part of it to the country to improve its services</span>
6 0
3 years ago
During its first and second years of operations, Rogers Company, a corporation using a periodic inventory system, made undiscove
elena-s [515]

Answer:

Net Income understated by $20,000

Explanation:

In the first year, closing inventory was overstated by $80,000. The implications of the above would be,

Net Income for the first year would be overstated by $80,000

In the Second year,

Opening Stock would be overstated by $80,000

Due to this, cost of production stands overstated by $80,000.

Now, given in the question that closing stock for second year is overstated by $60,000 i.e profits are overstated by $60,000.

This means, the net effect on profits would be, $80,000 less $60,000 i.e $20,000 understated profits for the second year.  

4 0
3 years ago
Given the acquisition cost of product z is $30, the net realizable value for product z is $27, the normal profit for product z i
vitfil [10]
Lcm requires to value inventory at the lower of acquisition cost or net realizable value.

Net realizable value = $27 - $1 = $26
Cost = $30

Therefore, it would be valued at $26
5 0
3 years ago
Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial
Nadusha1986 [10]

Answer:

the revised net operating income is   $ 26,400

Explanation:

Effect the Changes on the Units, Selling Price and Fixed Cost as described on the Original Income Statement.

                          Revised Income Statement

Sales( (12,900 units x 2)× ($20 per unit×0.90))      $ 464,400

Variable expenses ( $10× (12,900 units x 2))         ($ 258,000)

Contribution margin                                                  $206,400

Fixed expenses (144,000  + $36,000 )                    ($180,000)

Net operating loss                                                     $ 26,400

5 0
3 years ago
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