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3 years ago

Finance is only concerned with raising of funds. True or false. Support your answer with reason.

Business

1 answer:

Olin [163]3 years ago

6 0

Answer:

true

Explanation:

Financing is the process of moving providing funds to run the business activities, making purchasing or investing.

Example: the company can raise fund by issuing bond or share. this is one of the financing activities

the company also can find venture capital and angel investor to get fund to run the business. it also consider as financing activities

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Colgate-Palmolive Company has just paid an annual dividend of . Analysts are predicting dividends to grow by per year over the n

denis23 [38]

The amount of $97.85 is the price that dividend-discount model predict that Colgate stock should sell for today

Given Information

Current dividend (D0) = $1.59

Dividend payments for next five years includes:

D1 = 1.59 +0.18

D1 = 1.77

D2 = 1.77 +0.18

D2 = 1.95

D3 = 1.95 +0.18

D3 = 2.13

D4 = 2.13 +0.18

D4 =2.31

D5 = 2.31 +0.18

D5 =2.49

Year Cash Flow PVF at 8.1% Present value

1 1.77 0.92506938 1.637372803

2 1.95 0.855753358 1.668719048

3 2.13 0.791631229 1.686174517

4 2.31 0.73231381 1.691644901

5 2.49 0.677441082 1.686828295

Present value of Dividends 8.3707

PV of remaining dividends in 5 year = D5 x (1+g)/(Ke-g))

PV of remaining dividends in 5 year = 2.49(1+0.061)/(0.081-0.061)

PV of remaining dividends in 5 year = $132.0945

Given that g=6.1%, ke=8.1%

PV of remaining dividends in year = 0 = PV of the remaining dividends in year 5* 1/(1+0.081)^5

= 132.0945 * 1/(1+0.081)^5

= $89.48624

As per dividend-discount model, Colgate stock should sell for today = PV of Dividends till 5th year + PV of Remaining Dividend at t=0

= $89.48624 + $8.3707

= $97.8531

= $97.85

Hence, the amount of $97.85 is the price that dividend-discount model predict that Colgate stock should sell for today.

Read more about dividend

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8 0

2 years ago

In order for information to be meaningful, a firm’s accounting processes and procedures should be certified as accurate by accep

kipiarov [429]

Here is the correct answer that would best complete the given statement above. In order for information to be meaningful, a firm’s accounting processes and procedures should be certified as accurate by acceptable accounting standards so companies hire BOOKKEEPER PRIVATE ACCOUNTANTS to provide unbiased opinions about the accuracy of a firm’s financial statements. Hope this is the answer that you are looking for.

7 0

4 years ago

The clock division of Control Central Corporation manufactures clocks and then sells them to customers for $10 per unit. Its var

Nastasia [14]

Answer:

Minimum Transfer Price is $3.50

Explanation:

The Minimum transfer price is calculated by adding the variable cost per unit with the opportunity cost. In this case where the clock division is not operating at full capacity then the opportunity cost would be considered as $0.

Moreover, the division would be able to avoid a $0.5 cost per clock. Therefore, the variable cost will be $3.50 ($4 - $0.5) after eliminating the $0.5.

Finally, the minimum transfer would as follows:

Minimum Transfer Price = Variable cost + Opportunity Cost

Minimum Transfer Price = $3.50 + $0

Minimum Transfer Price = $3.50

8 0

3 years ago

Do all choices have costs?

expeople1 [14]

For every choice you make, you are sacrificing something else. For example, when you choose to buy a new phone, you are sacrificing buying a new laptop. The opportunity cost of buying the phone, is the cost of the laptop. Therefore, evey choice has a cost, because in every choice, there is a sacrifice

5 0

3 years ago

Choose the term that best matches the description given.

OleMash [197]

Answer:

supply

Explanation:

it is how much of something you have to sell

3 0

3 years ago

Finance is only concerned with raising of funds. True or false. Support your answer with reason. ​

Finance is only concerned with raising of funds. True or false. Support your answer with reason.