The main disadvantage of the valuation method is that the terminal value tends to dominate the total value in many cases.
In a free cash flow valuation, the intrinsic value equals present value of its free cash flow and thus, the net cash flow is left over for distribution to stockholders and debt-holders in each period.
- So, the disadvantage of the free cash flow valuation method is that the terminal value tends to dominate the total value in many cases.
Hence, the Option B is correct.
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Answer:
anti-spam policy
Explanation:
Spam emails are unsolicited emails that are usually sent to a large number of people. Therefore, if the company is trying to reduce unsolicited emails (spam) it should carry out an anti-spam policy.
The problem with spam is that it creates a negative image of the company, since current or potential clients can get annoyed by receiving so many unsolicited emails with advertisements or promotions. Instead of helping the company, spam email damages its.
The only factor that can cause a change in quantity supplied is price, so increase in Qs results from a change in supply price.
Answer:
The amount of dividend received by common stockholders in 2017 = $7500
Explanation:
The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.
The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500
In 2016 dividend of 22500 is declared and paid.
Out of this 22500, 12500 relates to prefernece dividend for 2015.
The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.
In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.
The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500
A town might decide to issue bonds to B) to build new roads or bridges. A town will achieve a specified amount of money by issuing the bond and there must be an obvious source for returning the bond value until its maturity date. Therefore, building projects or other projects related to the town's infrastructure would be the most appropriate reason for a town to issue bonds.
