Answer:
better prepared for potential problems
If one expects the market rate of return to increase across the board on all equity securities, then one should also expect an increase in all stock values.
<h3>Dividend Growth Model</h3>
- Investors can use the dividend growth model, a mathematical technique, to calculate a realistic fair value for a company's stock based on its present payout and anticipated dividend growth in the future.
- The fair value of a company is determined using a valuation method known as the dividend growth model, which makes the assumption that dividend growth will either be constant through time or will vary depending on the current period.
- The dividend growth model has the benefit of offering a straightforward approach to assessing a stock's fundamental worth. Investors are able to contrast the prices of stocks issued by businesses in various industries.
- All stock values should rise if one anticipates an increase in the market rate of return for all equity assets as a whole.
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Answer:
A CVS/pharmacy store is an example of a national business.
Explanation:
Answer:
A decrease in the balance of retained earnings.
Explanation:
Treasury stock transactions might cause: A decrease in the balance of retained earnings.
Treasury stocks refer to a transaction of redemption of shares. which is when a company buys back its own shares. This transaction leads to a reduction in the number of shares reported in the balance sheet and also retained earnings.
<u>The logic is that the company would have to use its own retained earnings to buy back its own shares.</u>
<u>This explains why treasury stock is subtracted from shareholders equity of which retained earnings is part, in the balance sheet.</u>