Answer:
Mature companies with relatively predictable earnings
Explanation:
Constant growth model is under the assumption that a company's dividend will grow at a constant rate indefinitely(forever). This makes more sense and hold is appropriate method of valuation for a mature company that has relatively predictable earnings. Young companies on the other hand have fluctuating earnings making it appropriate to use non-constant growth model to value its dividends.
Answer:
$29,648.12
Explanation:
For computing the net cash flow from the sale, first we have to compute the book value and loss or gain on sale which is shown below:
Book value on selling date = Purchase Cost - Accumulated depreciation for two years
= $62,800 × (1 - 0.2 - 0.32)
= $62,800 × 0.48
=$30,144
Now the loss on sale would be
= Book value - sale price
= $30,144 - $29,500
=$644
So, the net cash flow would be
= Sale value of fixed assets + (loss on sale of fixed assets × firm Tax rate)
= $29500 + ($644 × 23%)
= $29,500 + $148.12
= $29,648.12
Answer:
A service guarantee is a way to avoid compensating customers for a service failure.
Explanation:
Answer:
<u>b. False</u>
<u>Explanation:</u>
<em>Remember, </em>the term social responsibility in this context refers to an individual doing what would benefit society first, over any gain he may derive if he does otherwise.
For example, we are told that there is "low paying wages in Belize," which means low worker welfare, thus, even if no labor laws were been broken in his country, Olivia has a social responsibility to pay fair prices for the necklaces and earrings.
Answer:
2 year yield 4 years from now 37.99%
Explanation:
given data
Interest rates r1 = 6.05% = 0.0605
Interest rates r2 = 7.6% = 0.0760
to find out
2 year yielding 4 years from now
solution
we find here 2 year securities will be yielding 4 years from now by as
2 year yield 4 years from now = ![\frac{(1+r2)^{t2}}{[(1+r1)^{t1}]^{0.5}}](https://tex.z-dn.net/?f=%5Cfrac%7B%281%2Br2%29%5E%7Bt2%7D%7D%7B%5B%281%2Br1%29%5E%7Bt1%7D%5D%5E%7B0.5%7D%7D)
- 1
put here value we get
2 year yield 4 years from now = ![\frac{(1+0.0760)^6}{[(1+0.0605)^4]^{0.5}}](https://tex.z-dn.net/?f=%5Cfrac%7B%281%2B0.0760%29%5E6%7D%7B%5B%281%2B0.0605%29%5E4%5D%5E%7B0.5%7D%7D)
- 1
2 year yield 4 years from now = 1.379915 - 1
2 year yield 4 years from now = .379915
so 2 year yield 4 years from now 37.99%
