Answer:
B
Explanation:
A. the same amount to every investor regardless of their desired rate of return.
B. the present value of the future income which the stock generates.
C. an amount computed as the next annual dividend divided by the market rate of return.
D. the same amount as any other stock that pays the same current dividendand has the same required rate of return.
the dividend models are used to determine the value of a stock. It is assumed that the value of the stock is equal to the present value of the cash flows or dividends of the stock
The intrinsic value of a stock can be calculated using various dividend models. some of dividend growth models include:
1. The Gordon constant growth dividend model
2. The two-stage dividend growth model
3. The H-model
4. The three-stage dividend growth model
For example, if the dividend of a share in year 1 and 2 is 50 respectively and the discount rate is 10, the present value of the firm =
50 / (1.1) + 50 / (1.1^2) = 86.78
Answer:
A. True
Explanation:
Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.
A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.
Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.
Based on this explanation, the correct option is <u>A. True</u>. That is, hedging transactions in an active future market have zero.
Answer:
e) Safety stock.
Explanation:
The term that describes this form of safety-net for companies is called safety stock. Companies tend to have this in order to be able to maintain their business flow as efficiently as possible in case there are unforeseen increases in demand. Otherwise, if demand drastically increases and they do not have this safety stock the company will run out of stock immediately and lose out on sales as they wait for more stock to arrive, which can also cause that stock to sell out immediately due to the backed-up demand, which can lead to the business buying backed up for months.
Answer:
T
Explanation:
True. Because your mannerism towards problems and also determine how quick you can find a solution. Best to be optimistic than pessimistic.
Hope it helps. ♥
<h2>The given statement is partially true.</h2>
Explanation:
A traditional cover letter consists of introduction, paragraph and it includes header, argument and closing.
Header:
- Your name, address, phone number and date
- The person addressed, contact details
Introduction:
- Salutation
- Introducing the communication
- writing about goals
Argument:
- Convincing and reinforcing the point
- Quote the importance
- Provide facts (if any)
Closure:
- Inform about the follow ups
- Re-insist the important factor
- Sign off with the signature
