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Olenka [21]
3 years ago
7

When assuming nonconstant growth in dividends, to avoid the problem of having to forecast and discount an infinite number of div

idends, we must require that the dividends _____.
Business
1 answer:
Sergio039 [100]3 years ago
4 0

To avoid the problem of having to forecast and discount an infinite number of dividends, we must require that the dividends start to grow at a fixed rate in the future.

<h3>What are dividends?</h3>

Dividends are payments made by a company to its shareholders. This money is taken from the total profits made by the company. The remaining money after the payment of dividends goes to re-investment in order to grow the company.

Therefore, we can confirm that in order to avoid the problems presented in the question regarding dividends, we must require that they grow at a fixed rate in the future.

To learn more about profit visit:

brainly.com/question/1494270?referrer=searchResults

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Jacobs Company borrowed $100,000 at 8 percent interest for three months.
ASHA 777 [7]

Answer:

B. $2,000

Explanation:

The principal amount is $100,000

Interest rate is 8% usually per year ( 12 months)

Loan duration, three months:

Annual interest = $100,000.00 x 8%

   =$100,000.00x 0.08

   =$ 8000.00

Interest for 3 months

   =3/12x$8000.00

   =0.25x$8000.00

   =$2000

4 0
3 years ago
If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by:_
nydimaria [60]

If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by <u>9 percent.</u>

<h3>What are labor costs?</h3>
  • The total of all employee wages, employee benefits, and payroll taxes paid by an employer constitutes the labor costs. Direct and indirect (overhead) labor costs are separated.
  • While indirect costs are related to labor costs, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
  • While indirect costs are related to support labor, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
  • The price of goods or services may fluctuate away from their genuine cost if labor costs are poorly allocated or evaluated, which could hurt earnings.

To learn more about labor costs with the given link

brainly.com/question/5427701

#SPJ4

7 0
1 year ago
Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year, accounts receivable decreased by
stepan [7]

Answer:

a. used net cash of $2,000

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net loss -$13,000

Adjustment made:

Add : Depreciation expense $4,000

Add: Decrease in accounts receivable $5,000

Less: Increase in inventory -$8,000

Add: Increase in accounts payable $10,000

Total of Adjustments $11,000

Net Cash flow from Operating activities                   -$2,000

6 0
3 years ago
the current price of a stock is 200 if a coll option on this stock has a strike price of 201 the call is
PSYCHO15rus [73]

The call in this scenario is known as Out of the money (OTM).

Out of the money is when an option has no intrinsic value but rather, has an extrinsic value.

  • Here, the current stock price is below the strike price of 201,then, we say that the call is out of money.

  • A call option is called Out of the money when the underlying price is trading below the strike price of the call.

Hence, the call in this scenario is known as Out of the money (OTM)

Read more about Out of the money (OTM):

<em>brainly.com/question/15684431</em>

6 0
2 years ago
Do you believe the decision to start a new
Bad White [126]
I believe that it depends on the individuals skills if they match up well enough to the qualities of starting a business and they must know the risk they are taking with a new business so in most cases I think people should continue to look for employment
6 0
3 years ago
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