Answer:
II and III only
Explanation:
Since the Zero dividend is not possible in most of the scenarios.
The dividend growth model can be used to value the stock of firms that pay Annual dividend with a constant increasing rate of growth and the Annual dividend with a constant decreasing rate of growth.
Answer:
$7,200
Explanation:
According to the scenario, computation of the given data are as follows,
Total cost = $84,000
Salvage value = $12,000
Estimated life = 10 years
So, we can calculate depreciation expense by using following formula,
Depreciation yearly = (Total cost - Salvage value) ÷ Estimated life
= ($84,000 - $12,000) ÷ 10
= $72,000 ÷ 10
= $7,200
Answer:
The answer is: Mary uses Management Theory X
Explanation:
Theory X assumes that;
- workers are lazy and they dislike their jobs, they have no personal ambition,
- workers will try to avoid responsibility, so they need constant supervision,
- workers need to be controlled all the time and the fear of losing their job is the only thing that motivates them.
Theory X works with a "carrot and stick" approach, if workers perform their tasks they are rewarded, if not they are fired.
Answer: The bank's total loans amount is $160,000.
Explanation: The bank got a total deposit of $200,000 from its customers. The reserve ratio was given as 20%. The is the cash reserve amount that should be domiciled with Fed. So 20% of $200,000, which is the total deposit is $40,000. This means an amount of $40,000 is the reserved cash. Since the bank has chosen not to keep any excess reserves, it means the bank would be availing a total loans amount of $160,000 (%200,000 - $40,000) to its customers.
Answer:
$41.56
Explanation:
Since Antiques' dividends have a negative growth rate, we must adjust the perpetuity growth formula to recognize that negative growth:
stock price = [dividend (1 + growth rate)] / (required rate of return - growth rate)
- dividend = $7
- growth rate = -5%
- required rate of return = 11%
stock price = [$7 (1 - 5%)] / (11% - -5%) = ($7 x 95%) / 16% = $6.65 / 16% = $41.56
