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ki77a [65]
3 years ago
11

What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rat

e, and the applicable discount rate
Business
1 answer:
Alexandra [31]3 years ago
8 0

Answer:

b. dividend growth

Explanation:

These are the options for the question

zero growth

dividend growth

capital pricing

earnings capitalization

discounted dividend

Dividend growth model helps to rate the stock price of a company with regard to net value of future dividend. dividend growth model helps to calculate fair value of equity. It should be noted that dividend growth model determines the present value of a stock based on its next annual dividend. It can be calculated with this formula below

P= D1/(r-g)

Where p= stock price

D= next year dividend value

r= constant cost of equity capital

g= growth

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Roof should be correct.
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Timothy and his wife are considering the purchase of a new car. In addition to the price, they are also considering the cost of
Ivenika [448]

Answer:

The correct answer is D

Explanation:

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3 0
3 years ago
Joe must pay liabilities of 2000 due one year from now and another 1000 due two years from now. He exactly matches his liabiliti
sweet [91]

Answer:

The value of X+Y=2,769

Explanation:

According to the given data we have the following:

x=present value of 2,000

=2,000/(1+0.06)=1,886.79

y=present value of 1,000

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x+y=1,886.79+873.44

=2,760.23

=2,769

The value of X+Y=2,769

3 0
3 years ago
Read 2 more answers
Taxes can be justified if the government uses the revenue to (i) provide public goods such as national defense. (ii) clean up ne
nevsk [136]

Answer:

All of the above

Explanation:

Taxes are involuntary fees levied on individuals or corporations and enforced by government entity whether local or national in order to finance government activities. Taxes help in funding public works like medical research, national defense, water pollution etc.

7 0
3 years ago
If university printers outsources the personnel department functions, what is the maximum they can pay an outside vendor without
Fittoniya [83]

Answer:

$27,600

Explanation:

The maximum amount that the university should pay must be equal to the variable costs of the personnel department. The department's total costs are $35,500 and the variable costs are $22,000 and the avoidable fixed costs are $5,600, so as long as the university pays up to $27,600 (= $22,000 + $5,600) to the outside vendor, then it will not have increased its total costs.

The fixed non-avoidable costs = $35,500 - $22,000 - $5,600 = $7,900 will remain regardless of what decision is made. If the university pays more than the variable costs and avoidable fixed costs, e.g. $28,000, then total costs would be $36,900 which results in a $400 increase.

6 0
4 years ago
Read 2 more answers
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