This answer would be reliability.
Answer:
The correct choice is C)
The most logical thing to do would be to calculate the value of the stock in 5 years time.
Explanation:
This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.
The formula for the DDM, which assumes constant growth in dividends, is provided below.
P0 = D1/(r-g)
Where,
P0 = intrinsic value of stock
D1 = dividend payment one year from today
r = discount rate
g = growth rate
Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:
t0 = $0
t1 = $0
t2 = $0
t3 = $0
t4 = $0
t5 = $0.20
t6 = $0.20 * 1.035
Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.
Based on the information above, we are able to prove that the answer is '5'.
Cheers!
Answer:
high
Explanation:
the most popular time of year at a resort, hotel, or tourist attraction, when prices are highest
Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
Answer:
Revision/Review
Explanation:
DRP is a key procedure in every company so the documentation must be reviewed usually and updated accordignly.
