The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select-less thanequal togreater thanCorrect 1 of Item 1 its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select-abovebelowequivalent toCorrect 2 of Item 1 the stock's intrinsic value) and avoid stocks that are overvalued.
The value of a stock today can be calculated as the present value of -Select-a finitean infiniteCorrect 3 of Item 1 stream of dividends:
This is the generalized stock valuation model. We will now look at 3 different situations where we can adapt this generalized model to each of these situations to determine a stock's intrinsic value:
1. Constant Growth Stocks;
2. Zero Growth Stocks;
3. Nonconstant Growth Stocks.
Constant Growth Stocks:
For many companies it is reasonable to predict that dividends will grow at a constant rate, so we can rewrite the generalized model as follows:
This is known as the constant growth model or Gordon model, named after Myron J. Gordon who developed and popularized it. There are several conditions that must exist before this equation can be used. First, the required rate of return, rs, must be greater than the long-run growth rate, g. Second, the constant growth model is not appropriate unless a company's growth rate is expected to remain constant in the future. This condition almost never holds for -Select-maturestart-upCorrect 4 of Item 1 firms, but it does exist for many -Select-maturestart-upCorrect 5 of Item 1 companies.
Which of the following assumptions would cause the constant growth stock valuation model to be invalid?
The growth rate is zero.
The growth rate is negative.
The required rate of return is greater than the growth rate.
The required rate of return is more than 50%.
None of the above assumptions would invalidate the model.
-Select-Statement aStatement bStatement cStatement dStatement eCorrect 6 of Item 1
Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Zero Growth Stocks:
The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is:
Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entitles its owners to regular, fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return.
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $2.00 at the end of each year. If investors require an 10% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Nonconstant Growth Stocks:
For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation:
Basically, this equation calculates the present value of dividends received during the nonconstant growth period and the present value of the stock's horizon value, which is the value at the horizon date of all dividends expected thereafter.
Quantitative Problem 3: Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.15 per share at the end of 2013. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share

A perfectly competitive firm will not produce any output in the short run and will shut down if the price is less than its minimum average variable cost (AVC).

This is because if the price falls below AVC, the firm is not even able to cover its variable costs, meaning that it is better off shutting down and avoiding any further losses. In the short run, a perfectly competitive firm will continue to produce as long as the price exceeds its average variable cost, but it may not be able to recover its fixed costs. However, if the price falls below the minimum AVC, the firm will not be able to cover even its variable costs, and continuing to produce would only lead to greater losses. Therefore, it is rational for the firm to shut down in the short run if the price falls below the minimum AVC. In the long run, a perfectly competitive firm will exit the industry if it cannot earn a normal profit, which means that it is unable to cover all its costs, including both variable and fixed costs. This is because in the long run, there are no fixed costs, and firms are free to enter and exit the industry. If the price remains below the minimum AVC, the firm will continue to lose money, and eventually, it will exit the industry.

for more such questions on average

https://brainly.com/question/29509552

#SPJ11

The Weighted Average Cost is $55.85 per unit and cost of good sold is $25,132.50

From the given table, we can assume some particulars. Cost of Goods Available for Sale, Cost of Goods Sold, Weighted Average Ending Inventory - Weighted Average Cost, and Average Cost per Unit.

140 units at $54 per unit = $7,560 210 units at $57 per unit = $11,970 120 units at $58 per unit = $6,960 Total purchases cost = $26,490

Cost of Goods Available for Sale = Beginning Inventory + Purchases = $3,120 + $26,490 = $29,610

The Weighted Average Cost is calculated by dividing the total cost of goods available for sale by the number of units available for sale.

Weighted Average Cost = Cost of Goods Available for Sale ÷ Number of Units Available for Sale = $29,610 ÷ 530 = $55.85 per unit

We need to multiply the weighted average cost per unit by the quantity of units sold:

Cost of Goods Sold = Number of Units Sold x Weighted Average Cost per Unit = 450 units x $55.85 per unit = $25,132.50

Learn more about weighted average cost here:

brainly.com/question/31076133

#SPJ1

Answer:

Highly useful. Knowing the flexibility to push back the deadline can help in managing time and resources effectively, and ensure that the test version of the product is delivered on time with high quality.

Explanation:

The two MBTI preferences that appear to be most closely connected to leadership are thinking & judging, according to the limited MBTI studies.

"The action of becoming the leader of a group or an organization." This is how the Oxford Dictionary defines leadership. Simply defined, being a leader entails taking risks and challenging the status quo. Followers are motivated by leaders to take on greater and novel tasks.

Leadership is important because it motivates, inspires, and sets an example for others to improve the world. A vision, a plan of action, and a strong relationship with their subordinates are all characteristics of a leader. As a result, they help others collaborate to perform incredible things.

To know more about leadership visit :

https://brainly.com/question/1274191

#SPJ4

Answer:

\(K_T = -3\)

Explanation:

Given

\(MPC_1 = 0.65\)

\(MPC_2 = 0.75\)

Required

Determine the Tax Multiplier (KT)

KT is calculated as follows;

\(K_T = \frac{-MPC}{1 - MPC}\)

Substitute 0.75 for MPC because MPC has changed from 0.65 to 0.75

\(K_T = -\frac{0.75}{1 - 0.75}\)

Evaluate the denominator

\(K_T = -\frac{0.75}{0.25}\)

Divide fractions

\(K_T = -3\)

Hence, the tax multiplier is -3

Answer:

ushdusbs

Explanation:

espero te si ha bro zorry

Substitute Goods refers to the goods which can be used in place of one every other to fulfill a precise want. Complementary Goods refers to those goods which are consumed together to fulfill a specific want.

We determine whether items are complements or substitutes based on pass price elasticity - if the go price elasticity is superb the items are substitutes, and if the pass rate elasticity are negative the items are complements.

age of extra of good A requires the use of more correct B. For example, ink jet printer and ink cartridge are complements. Two goods (C and D) are substitutes if the use of extra of properly C replaces the use of proper D. For example, Pepsi Cola and Coca Cola are substitutes.

Learn more about compliments, or unrelated here;

https://brainly.com/question/8348518

#SPJ1

Their medical payments coverage

While interacting with others in a virtual space, to be fully human means for instance such as in a classroom, means having the qualities and characteristics inclusive to humanity, even though the medium of communication being virtual.

It involves identifying and embracing our shared humanity and engaging in meaningful connections with other people like friends family colleagues, even though miles apart and can only see by virtual screens.

Emotional connections, sharing knowledge, expression ,communication collaboration cooperation are the various forms. Therefore, virtual experiences though lack sensory and physical aspects of face-to-face interactions, they still provide a platform for human connection, learning, and growth.

To know more about virtual interaction,

brainly.com/question/31455408

brainly.com/question/32326690

Answer:

Please see below for all the journal entries required for Houston.

Explanation:

2017

Jan. 9

Debit: Computer Equipment $9,000

Debit: Interest Expense $630

Credit: Interest Payable ($9,000 x 7%) $630

Credit: Notes Payable $9,000

Jan. 29

Debit: Accounts Receivables ($69,000 x 3/4) $51,750

Debit: Cash ($69,000 x 1/4) $17,250

Credit: Sales Tax Payable ($69,000 x 6%) $4,140

Credit: Sales $69,000

Feb. 5

Debit: Sales Tax Payable $4,140

Credit: Cash $4,140

Jul. 9

Debit: Interest Payable ($9,000 x 7%) $630

Debit: Notes Payable $9,000

Credit: Cash $9,630

Aug. 31

Debit: Inventory $3,000

Debit: Interest Expense $330

Credit: Interest Payable ($3,000 x 11%) $330

Credit: Notes Payable $3,000

Dec. 31

Debit: Warranty Expense ($601,000 x 3%) $18,030

Credit: Accrued Warranty $18,030

Dec. 31

Debit: Interest Payable $330

Credit: Accrued Interest $330

2018

Feb. 28

Debit: Accrued Interest $330

Debit: Notes Payable $3,000

Credit: Cash $3,330

The inventory costing asset account, which shows up on the balance sheet, is where the costs associated with units produced or in production are financial recorded.

The cost is transferred to the cost of goods sold account when the goods are eventually sold, where it appears on the income statement. Financial Process costing is a type of costing that's primarily utilized costing in manufacturing, where products are mass-produced constantly using one or more processes. Examples of this include producing chemicals, erasers, or processed foods. Instead of tracking expenses for each individual item, organizations that use process costing follow the flow of costs from department to department.

To learn more about financial, click here.

https://brainly.com/question/1537763

#SPJ1

Answer:

I think it is Market equilibrium

The balance between supply and demand is known as the market equilibrium.

The supply and demand are determined through the price mechanism in a free market. Such as if the goods or services are bought more frequently then their prices will go up and vice versa.

This means that the price mechanism helps to determine what goods are to be produced. In the case where the demand for good increase will result in price go up and will ultimately result in producers supplying more of those goods.

This system of price helps to scale the point where competing demands may be weighed by the consumer or producer requirements.

However, the movement towards the price equilibrium and the resulting balance between the supply and demand is known as the market equilibrium.

Learn more on supply and demand here: https://brainly.com/question/4804206

In these situations, the individual who wants to replace it is required to present a purchase receipt. You can phone the manager, who will be able to resolve the issue if the person still insists on not having a receipt.

The process of returning a product to a shop for a refund involves the buyer returning previously acquired goods.

Thus, go through the guidelines of the return policy and do as per the statements.

Learn more about product return:

https://brainly.com/question/19031135

#SPJ1

Public personnel management is crucial for the effective functioning of public sector organizations. It encompasses the policies, practices, and processes involved in managing the human resources of government agencies at various levels.

The importance of public personnel management can be understood from several perspectives:

1. Efficient Service Delivery: Public personnel management ensures that government agencies have competent and motivated employees who can efficiently deliver public services. By recruiting, selecting, and retaining the right people for the job, personnel management contributes to enhancing the quality and responsiveness of public services.

2. Merit-Based System: Public personnel management promotes a merit-based system where individuals are hired and promoted based on their qualifications, skills, and performance rather than favoritism or nepotism. This helps to build a professional and competent workforce and fosters public trust and confidence in government institutions.

3. Employee Development: Personnel management plays a crucial role in providing training and development opportunities to public sector employees. Continuous learning and skill enhancement programs enable employees to adapt to changing work requirements, improve their performance, and contribute effectively to organizational goals.

4. Fairness and Equity: Effective personnel management ensures fairness and equity in the treatment of employees. It establishes transparent and standardized processes for recruitment, performance evaluation, promotion, and disciplinary actions, reducing the likelihood of discrimination and promoting a culture of fairness and equality.

5. Workforce Planning: Public personnel management involves strategic workforce planning to anticipate and address future human resource needs. By identifying skills gaps, succession planning, and implementing effective recruitment and retention strategies, it ensures that the organization has the right people with the right skills in the right positions.

6. Employee Engagement and Morale: Public personnel management practices, such as performance recognition, rewards, and employee involvement, contribute to higher levels of employee engagement and morale. Engaged employees are more likely to be motivated, committed, and productive, leading to improved organizational performance.

In conclusion, public personnel management is essential for efficient and effective public service delivery, promoting a merit-based system, developing employees, ensuring fairness and equity, strategic workforce planning, and enhancing employee engagement. By focusing on the management of human resources, public sector organizations can achieve their objectives and serve the needs of the public more effectively.

For more questions on human resources, click on:

https://brainly.com/question/28569763

#SPJ8

Answer:

$19,000

Explanation:

Calculation to determine To attain its desired ending cash balance for March, the company needs to borrow

First step is to calculate the Actual ending cash balance

Using this formula

Actual ending cash balance = Beginning cash balance + Cash receipts −Cash disbursements

Let plug in the formula

Actual ending cash balance= $54,000 + $138,000 −$133,000

Actual ending cash balance= $59,000

Now let calculate the Amount borrowed

Using this formula

Amount borrowed = Desired ending cash balance −Actual ending cash balance

Let plug in the formula

Amount borrowed = $78,000 −$59,000

Amount borrowed= $19,000

Therefore To attain its desired ending cash balance for March, the company needs to borrow $19,000

Answer:

Explanation:

iii. promote stable financial system....or maybe
ii. foster economic growth and employment
becz........
The mission of the Federal Reserve System is to foster the stability, integrity, and efficiency of the nation's monetary, financial, and payment systems so as to promote optimal macroeconomic performance. to the public....

The objective of the Federal Reserve Bank is to support a stable financial system, encourage economic growth, and create jobs. The right answers are therefore (ii) and (iii).

The most recent organizations established by the American government to fulfill the duties of a central bank are the Federal Reserve Banks. Previous organizations include the Independent Treasury (1846–1920),

the National Banking System, the First (1791–1811) and Second (1818–1824) Banks of the United States, among others (1863–1935).

With respect to these institutions, there are several policy issues that need to be addressed, such as the extent to which private interests can sway decisions, how to balance regional and national economic concerns,

how to avoid financial panics, and what kind of reserves should be used to support currencies.

Learn more about  federal reserve bank, from :

brainly.com/question/30002356

#SPJ2

Answer:

Based on SLII, the leadership style you should exhibit in this case is:

Directing.

Explanation:

Directing as a leadership style should not be done in total isolation of the other leadership styles.  While the junior member can be delegated to handle the organization of the PowerPoint presentation, there is need to initially direct, coach, and support this member to ensure that group objectives are attained.

Directing ensures that this junior member is properly instructed and supervised.

Coaching ensures that the junior member, having shown some level of competence, is fully engaged to develop all the required skill-set.

Supporting enhances the competence level of the junior group member.  This can be achieved through the active participation of the leader in the junior's assignments.

Delegating ensures that the ultimate leadership goal is attained, and this happens when the junior's competence cannot be questioned.

The person who is expected to become the first Trillionaire is Jeff Bezos, founder, and CEO of Amazon.

According to a study conducted by Comparison, Jeff Bezos could become the world’s first Trillionaire by the year 2026. This prediction was made on the basis of the average percentage of growth of Bezos’ net worth over the last five years. The study also highlighted that Bezos’ wealth has grown by an average of 34% over the last five years. At this rate of growth, his net worth could reach $1 trillion by the year 2026.

However, the current COVID-19 pandemic has had a negative impact on the economy, and Bezos’ net worth has already decreased by over $20 billion since the start of the pandemic. Despite this, it is still possible that Bezos may become the world’s first Trillionaire in the future, but there are also other contenders who could reach this milestone, such as Elon Musk, CEO of Tesla and SpaceX. However, as of now, there is no confirmed Trillionaire in the world.

Know more about Jeff Bezos here:

https://brainly.com/question/33123119

#SPJ8

Based on the given merchandising transactions, a journal entry has been prepared below:

No Date General Journal Debit Credit

1 Aug 01 Merchandise inventory $6,000

Accounts payable-Aron  $6,000

2 Aug 05 Accounts receivable-Baird $4,200

Sales  $4,200

3 Aug 05 Cost of goods sold $3,000

Merchandise inventory  $3,000

4 Aug 08 Merchandise inventory $5,000

Accounts payable-Waters  $5,000

5 Aug 09 Delivery expense $200

Cash  $200

6 Aug 10 Sales return and allowances $1,000

Accounts receivable-Baird  $1,000

7 Aug 10 Merchandise inventory $500

Cost of goods sold  $500

8 Aug 12 Accounts payable-Waters $500

Merchandise inventory  $500

9 Aug 14 Accounts payable-Aron $190

Cash  $190

10 Aug 15 Cash ($3,200 - $3,136) $3,136

Sales discounts ($3,200 x 2%) $64

Accounts receivable-Baird ($4,200 - $1,000)  $3,200

11 Aug 18 Accounts payable-Waters ($5,000 - $500) $4,500

Merchandise inventory ($4,500 x 1%)  $45

Cash ($4,500 - $4,455)  $4,455

12 Aug 19 Accounts receivable-Tux $3,600

Sales  $3,600

13 Aug 19 Cost of goods sold $1,800

Merchandise inventory  $1,800

14 Aug 22 Sales return and allowances $600

Accounts receivable-Tux  $600

15 Aug 29 Cash ($3,600 - $600) $3,000

Accounts receivable-Tux  $3,000

16 Aug 30 Accounts payable-Aron ($6,000 - $190) $5,810

Cash  $5,810

Read more about journal entries here:

https://brainly.com/question/14279491

#SPJ1

Answer:

One of the distinctive features of management in a nonprofit is the fact that the organizationhasmultiple stakeholderswhose needs are often equally important. Although a nonprofit organizationby definition does not earn profits, it must manage its bottom line. Nonprofits are usually driven by asocial mission that can be difficult to quantify, and they have clients or users of their services whose

Explanation:

Answer:

Explanation:

B

The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.

1. The US Senate passed the 2022 Defense Authorization Act.

2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.

3. The total amount allocated for the Defense Authorization Act is $768 billion.

4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.

5. The Act represents a 5% increase in the US defense budget when compared to the previous year.

6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.

7. The Act was passed overwhelmingly, indicating strong support from the Senate.

8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.

9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.

10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.

For more such questions on Defense Authorization Act, click on:

https://brainly.com/question/29225501

#SPJ8

The amount of cash was from (used in) operating activities:

$100,000

An organization's operating operations are those that are directly involved in offering its products and/or services to the public. Manufacturing, distributing, promoting, and selling goods and services are some of the company's primary commercial operations.

The term "cash flow from operating activities" (CFO) refers to the revenue a business generates from ongoing, regular commercial operations like producing and selling products or offering clients a service. On a company's cash flow statement, it is the first section shown.

Cash flow at the end-Cash Flow at the beginning = Cash Flow from(used in) Operating activities + Cash Flow from(used in) Investing activities + Cash Flow from(used in) Financing activities

there is increase in net cash of $10,000,

Cash flow at the end-Cash Flow at the beginning=10000

10000=Cash Flow from(used in) Operating activities-52000-38000

Cash Flow from(used in) Operating activities=10000+52000+38000

Cash Flow from(used in) Operating activities=$100,000

To know more about operating activities visit:

https://brainly.com/question/14122060

#SPJ9

The calculation for percentage change of personal income is A. 4.29%. that is, the real raise of salary in percentage is 4.29%.

The overall rise in prices of goods and services over time in an economy is referred to as inflation. When inflation occurs, people may purchase fewer products and services with the same amount of money because the purchasing power of a unit of currency declines.

James's initial income of $42,000 must be adjusted for inflation before being compared to his current compensation of $43,800 in order to determine his actual raise. The inflation rate was 2.8%.

Raise in salary = 43800 - 42000 = $1800

Therefore, real raise of salary in percentage is:

= Raise in salary/ initial salary x 100%

= 1800/42000 x 100%

= 4.285% = 4.29%

To know more about inflation, visit:

brainly.com/question/28190771

#SPJ1

Answer:

c

Explanation:

Answer:

7 reasons why businesses should be aware of the political legal environment are as follows:

1- Businesses do not cease to be part of a much larger environment, which is the nation as a whole, with which what happens in it will affect business to a greater or lesser extent.

2- Many times, the political interests of certain sectors can favor or harm certain businesses, with which businessmen must be attentive to those interests.

3- Politicians are the ones who give confidence in the country to foreign investors, with which their policies can increase or restrict competition from local investors.

4- The generation of employment that arises from a favorable political and legal environment means that businesses have the necessary workforce to maximize their production.

5- The political and economic stability allows the reinvestment of the profits of the entrepreneurs and their businesses.

6- The existence of productive development plans and other subsidies to productive companies can be used by businesses as a government aid to maximize their production.

7- In short, the stability of the nation will make it easier for businesses to prosper, while political stability usually entails economic stability.

Answer:

In microeconomics theory, the opportunity cost of particular activity option is the less of value or benefit that would be incurred by engaging in that activity