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Lena [83]
3 years ago
6

According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the le

ngth of time he or she plans to hold the stock.A. True B. False
Business
1 answer:
Alina [70]3 years ago
3 0

Answer:

According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.

A. True

Explanation:

The DCF (Discounted Cash Flow) method of stock valuation is based on the assumption of the time-value of money.  This approach considers that the cash flow that is received today is much more than the same amount of cash flow received any other time in the future.  And the time of the future receipt or payment affects the amount of the cash flow, with decreasing consequences based on increasing time into the future.

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In the Republic of Sildavia, a market basket of goods and services cost $130 in 2009, $140 in 2010, and $160 in 2011. Based on t
yarga [219]

Answer:

23.07%

Explanation:

For computing the inflation rate first we have to determine the price index for 2011 which is shown below:

Price index for 2011 is

= (market basket of goods and services cost in year 2011) ÷ (market basket of goods and services cost in year 2009) × 100

= ($160) ÷ ($130) × 100

= 123.07%

Now the inflation rate is

= (Price index for 2011 - price index for 2009) ÷ (price index for 2009) × 100

= (123.07 - 100) ÷ (100) × 100

= 23.07%

And, the price index for 2009 is

= ($130) ÷ ($130) × 100

= 100%

4 0
4 years ago
At the end of the current year, Smith Software Inc. reported $27 million of net income and $420 million of retained earnings. Th
Afina-wow [57]

Answer:

Dividends paid is $2 millions

Explanation:

The change in retained earnings during the year can be calculated by taking the difference between the opening and the closing balance which is calculated as under:

Change in Retained Earnings = $420 million - $395 million = $25 millions

The change in retained earnings during the year is the share of Net income retained by the company which means the remainder amount which is not retained by the company is Dividend paid.

And

Dividends paid = $27 million Net Income - $25 million Earnings Retained

Dividends paid = $2 millions

3 0
3 years ago
Procter & Gamble, the maker of Crest brand toothpaste, has modified this brand to include whiteners. To encourage consumers
boyakko [2]

Answer: shaping

                                         

Explanation: In simple words, shaping refers to the process under which an organisation tries to manipulate the behavior of potential customers by using different marketing tools.

In the given case, Procter and gamble were giving discount to attract the customers. They were planning to charge full price once the customers get used to of their product. So they were using discount to change the behavior of their potential customers hence they were using shaping.

4 0
3 years ago
Mia and Mario specialize in producing the item in which she or he has a comparative advantage. Then they trade one pasta dish fo
Gnoma [55]

Answer:

4, 4

Explanation:

Now mia has comparative advantage in pasta production while Mario has advantage in pizza making

Before they both specialized, one was making 4 pizza and 4 pasta while the other made 4 pasta and 4 pizza.

Total pizza made = 8

Total pasta made = 8

After they specialized,

Maria makes 4 + 8 = 12 pizza

Mia makes 4+8 = 12 pizza

12-8= 4

So they both make 4 more pasta and 4 more pizza

3 0
3 years ago
Is the transition of Jews and Irish from the non-White to White category surprising to you? Brodkin also discusses the transform
sasho [114]

Answer:

Additional changes in race within the US Census Categorization include American Indians, Aleut and Eskimo, Asian Indians, Part Hawaiian/Samoan/Guamanian and the Mexicans.

Explanation:

1. American Indians were not identified as such until 1860, when the racial category of “Indian” was added. Beginning in 1890, the census included a complete count of American Indians on tribal land and reservations.

2. In 1960, categories for Aleut and Eskimo were added in Alaska only. Since 2000, the category has grouped both of these together as “American Indian or Alaska Native,” and the census form provides a blank space to specify a tribe.

3. Asian Indians were called “Hindus” on the census form from 1920 to 1940, regardless of religion. Beginning in 2000, people could select from among six different Asian groups in addition to “Other Asian,” with the option to write in a specific group.  

4. The categories of Hawaiian, Part Hawaiian, Samoan and Guamanian were added and counted with the totals for the Asian population. Beginning in 2000, based on research conducted by the Census Bureau and new Office of Management and Budget guidelines, Native Hawaiian, Samoan and Guamanian became part of a new category: Pacific Islander.  

5. Mexicans were counted as their own race in 1930 for the first and only time. Hispanic groups of any kind were not offered as options again until 40 years later, when the census form began asking about Hispanic origin as a separate question from race.

7 0
3 years ago
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