Yes, she can make the purchase and have money left over.
Answer:
D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.
Explanation:
So, we evaluate each option.
a. We discount the dividends by the required rate of return. So incorrect.
b. The dividend yield is annual dividend per share divided by stick price per share. the 5% is the growth in dividend and not the actual dividend itself. So, incorrect.
c. The constant growth is appropriate for companies whose dividend patterns are stable. Startups have multiple stage growths and this option becomes incorrect as constant growth is not applicable.
d. A zero growth stock is one where dividend remains the same. So when there is no growth in dividend, the constant growth model becomes inapplicable. So, the statement is correct.
So, here we have our correct statement and all others are incorrect.
Answer:
False
Explanation:
Retained earnings can be defined as the amount of money or income left after a firm or organization as paid out it dividends to their shareholders.
Retained earnings are also an organisation's profit which they retained or keep and this earning is reinvested for other purposes. Such purposes include: Future expansion of the the organization. Retained earnings are a form of liability to a firm.
Funds acquired by the firm through retained earnings (similar to their free cash flow), have cost attached to them. This is because the cost of retained earnings is equivalent to rate of return on re-investment of dividends of shareholders that is paid by the organization. Hence, retained earnings is equivalent to the cost of equity.
I think it's the $5 million dollar villa is protected from business liabilities unless the liability is incurred through wrongful acts because there is no liability for members unless incurred through wrongful acts. <3
Answer:
Tim can easily determine that the price of the computer is more than the price of the vacation = Unit of Account
Tim has $1,537 in his checking account = Store of value
Tim writes a check for $1,299 = Medium of Exchange
