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Katarina [22]
3 years ago
12

The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.

Business
1 answer:
JulsSmile [24]3 years ago
7 0

Based on the economic and financial analysis, the main reason for considering <u>nonconstant growth</u> in dividends is to allow for "<u>Supernormal</u>" growth rates over "<u>some finite length of time</u>."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is <u>supernormal</u> and <u>some finite length of time</u>.

Learn more here: brainly.com/question/13223703

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The problem that Bob will most likely face in terms of evaluation and feedback step in the decision making process is when Bob’s gathered information may be neglected when the plan that he has done has been a success or it has been a failure.

3 0
3 years ago
On January 1, Greene Inc. issued $5,000,000, 9% bonds for $4,685,000. The market rate of interest for these bonds is 10%. Intere
skad [1K]

Answer:

b.$296,500.

Explanation:

Calculation to determine what Greene should report as unamortized bond discount

First step is to calculate the discount amount

Discount Amount= ($5,000,000 × .09) - ($4,685,000 × .10)

Discount Amount= $18,500

Now let determine the unamortized bond discount

Unamortized bond discount=$315,000 - $18,500 Unamortized bond discount= $296,500

Therefore Greene should report unamortized bond discount of $296,500

5 0
2 years ago
Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be a
ArbitrLikvidat [17]

Answer:

c. $150.

Explanation:

the extra amount of hours Maurice can work taking a flight will be of 5 hours

(8 hours taking a plane against 3 hours if driving)

As the income per hour is 30 dollar it can generate;

5 hours x $30 per hour = $150

Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150

8 0
3 years ago
Using the Indirect Method to create the Statement of Cash Flows, which of the following options are correct in describing what m
Gwar [14]

Answer:

a) A gain is subtracted from net income.

d) An increase in operating current assets is subtracted from net income.

e) A decrease in operating current liabilities is subtracted from net income.

Explanation:

Operating activities: It involves those transactions that affect the after-net income working capital. It would subtract the rise in current assets and a decrease in current liabilities while add a decrease in current assets and an increase in current liabilities.  

It would modify those changes in working capital. For addition, the depreciation costs are added to the net income and the loss on the sale of assets is applied, while the gain on the sale of assets is excluded

So, the following options are used-

a) A gain is subtracted from net income.

d) An increase in operating current assets is subtracted from net income.

e) A decrease in operating current liabilities is subtracted from net income.

8 0
3 years ago
Consider an industry in which chief executive ocers (CEOs) run rms. There are two types of CEOs: exceptinal and average. There i
klemol [59]

Answer

The answer and procedures of the exercise are attached in the following 3 images.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 3  sheets with the formulas indications.  

8 0
3 years ago
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