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ANTONII [103]
2 years ago
12

Which of the following assumptions would cause the constant growth stock valuation model to be invalid? The growth rate is zero.

The growth rate is negative. The required rate of return is greater than the growth rate. The required rate of return is more than 50%. None of the above assumptions would invalidate the model. -Select-
Business
1 answer:
Svetlanka [38]2 years ago
8 0

Answer:

e. None of the above assumptions would invalidate the model

Explanation:

Incomplete question <em>"The constant growth model is given below: P0 = [D0(1 + g)]/[(rs - g)]"</em>

<em />

According to dividend discount model,  

P0 = D1/(R-G)

D1 - Dividend at t =1

R - Required rate

G - Growth rate

This would be invalid if R < G. In other words, Dividend growth model will be invalid in only one situation, that is, when growth rate is more than require return. In this situation growth model cannot be used.

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At December 31, 2020, Ivanhoe Corporation had a deferred tax liability of $26,800. At December 31, 2021, the deferred tax liabil
Tju [1.3M]

Answer:

$65,300

Explanation:

Ivanhoe's income tax expense = deferred tax liability 2021 - deferred tax liability 2020 + current tax expense 2020 = $42,800 - $26,800 + $49,300 = $65,300

A deferred  tax liability occurs when a corporation's income statement shows a certain amount following US GAAP, but the tax rules used by the IRS determine a different amount.

5 0
3 years ago
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
adell [148]

Answer:

Direct material price variance= $12,500 unfavorable

Explanation:

Giving the following formula:

The standard price per pound is $2.00.

The actual quantity of materials purchased and used in production is 50,000 pounds.

The actual purchase price per pound of materials was $2.25.

<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 2.25)*50,000

Direct material price variance= $12,500 unfavorable

6 0
3 years ago
Break-Even Point
11111nata11111 [884]

Answer:

The right answer is:

(a) 5916 units

(b) 5046 units

Explanation:

Given:

Sales,

= $59

Variable cost,

= $30

Fixed cost,

= $171,564

Increased sale,

= $64

Now,

(a)

Contribution margin will be:

= Sales - Variable \ cost

= 59-30

= 29 \ per \ unit ($)

hence,

Breakeven will be:

= \frac{Fixed \ cost}{Contribution \ margin}

= \frac{171564}{29}

= 5916 \ units

(b)

Contribution margin will be:

= Sales-Variable \ cost

= 64-30

= 34 \ per \ unit ($)

hence,

Breakeven will be:

= \frac{Fixed \ cost}{Contribution \ margin}

= \frac{171564}{34}

= 5046 \ units

5 0
2 years ago
An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a(n) ___________
Law Incorporation [45]

An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a "general" partner.

A general partnership, the essential type of association under common law is a course of action by which at least two people consent to partake in all advantages, benefits and monetary and legitimate liabilities of a business. Such partners have boundless liability, which implies their own assets are at risk to the partnership's commitments.  

6 0
3 years ago
Predictive analytics is used for all of the following exceptâ:
Sindrei [870]

Answer: determining the best routes for product delivery.

Explanation:

Predictive analytics is designed I order to help determine the effects of changes that occurs in a business environment.

It can be used for establishing consumer credit scores, forecasting the safety of drivers, identifying the most profitable customers and also anticipating customer response to price changes.

It is not used for determining the best routes for product delivery.

6 0
3 years ago
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