Answer:
$3443.86
Explanation:
a=p(1+r/n)^nt
a=2450(1+.0525/12)^12*6.5
3443.86
Answer:
A) and goes further than necessary to ensure full coverage
Answer:
when valuing companies with temporarily high growth rates.
Explanation:
Discounted dividend models are methods to assess a company's share price based on the dividends that company will distribute in the future. Also known by its name in English dividend discount model (DDM).
These models are based on the theory that the price of a share must be equal to the price of the dividends that the company will deliver, discounted at its net present value.
If the price of the share in the market is lower than the result obtained by the discounted dividend model, the share is undervalued and therefore it is advisable to buy. If, on the contrary, the market price is higher than the model, it is understood that the share price is too high.
Multistage dividend growth models
It is very difficult for a company to experience the same growth every year as the Gordon model assumes, so multistage models assume different growths for each period.
The most common is to use two or three stage growths, where at first the growths are higher but then tend to stabilize at a smaller constant growth. As for example in early stage companies.
Answer: E) Recoding
Explanation:
Recoding refers to the changing of a variable to better suit the needs for which the variable is being collected.
The variable's parameters can be redefined using recoding to either include more information or less so that the result can be more reflective of the situation on ground.
In mixing the lowest income category with the next lowest, recoding would have occurred.
