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Lisa [10]
3 years ago
7

Assume the firm’s dividend payment is $0.18, and that the required rate of return for the firm’s industry is 10.1%. What is the

market value of firm’s shares under the Dividend Discount Model? Group of answer choices $18.30 $17.77 $1.78 $1.83
Business
1 answer:
aleksandr82 [10.1K]3 years ago
7 0

Answer:

the market value of the share is $1.78

Explanation:

The computation of the market value of the firm under the dividend discount model is shown below:

The Market value of the share is

= Dividend Payment ÷ Required return

= $0.18 ÷ 10.1%

= $1.78

Hence, the market value of the share is $1.78

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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3 years ago
Tetra Co. uses the perpetual inventory system and a FIFO cost flow method. On January 1, the company purchased 2,400 units of in
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Answer:

The options are not correct:

Dr costs of good sold  $15,800

Cr inventory                                   $15,800

Explanation:

The 4,400 units sold consist of the 2,400 units purchased on 1 January at $4.00 per unit and the balance of 2,000 units from the purchase made on January 12 at $3.10 per unit

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The appropriate entries is to debit costs of good sold with $15,800 while merchandise inventory is credited with $15,800

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3 years ago
Many older companies have changed from a defined-benefit plan to a(n) ________, which is a retirement plan where workers are cre
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Cash balance plan is a retirement plan where workers are credited with a part of their pay annually and a predetermined rate of interest.

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According to U.S. GAAP, asset retirement obligations are ________.
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D) long-term legal requirements to restore property

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