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Mariulka [41]
2 years ago
11

The constant growth DCF model used to evaluate the prices of common stocks is conceptually similar to the model used to find the

price of perpetual preferred stock or other perpetuities.A. TrueB. False
Business
1 answer:
vampirchik [111]2 years ago
4 0

Answer:

True

Explanation:

The perpetuity formula used to determine the value of stock is:

stock value = <u>dividend       </u>  

                      interest rate

The discounted cash flow formula used to determine the value of a project or a revenue generating asset is:

present value = <u>cash flow       </u>  

                          discount rate

The cash flow is equivalent to the dividend, and the discount rate is equivalent to the interest rate.

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Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be _____
vekshin1

Answer:

Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be <u>LOWER</u> and real gdp to be <u>LOWER</u>.

Explanation:

A government engages in contractionary fiscal policy when it decreases spending or increases taxes. This is done to lower the economy's inflation rate, but it also decreases aggregate income which will decrease aggregate supply, resulting in a lower real gross domestic product.

6 0
2 years ago
Larry wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, as he know
kotykmax [81]

Answer: B brand awareness

Explanation:

This is extent to which consumers are intimate with the qualities or image of a particular brand of goods or services. Coca-Cola and Google are good example of brand awareness , they still run advert on Tv's, ànd radio stations and they are accepted.

3 0
2 years ago
Delta diamonds uses a periodic inventory system. the company had five one-carat diamonds available for sale this year: one was p
Murljashka [212]
The cost of goods sold for the year is $500. 

Since FIFO method is to be used, the cost of goods sold for the year should be the cost of its first purchase regardless of when the product is actually bought. Thus, the cost of goods sold for the year is $500 ($500 × 1). 
3 0
2 years ago
g Ken Francis is offered the possibility of investing $2,745 today; in return, he would receive $10,000 after 15 years. What is
Furkat [3]

Answer:

9.00%

Explanation:

If Ken Francis' original investment (P) is $2,745 and the future value (FV), after a period (n) of 15 years, is $10,000, the annual interest rate (r) for this investment is given by:

FV = P*(1+r)^n\\r=\sqrt[n]{\frac{FV}{P}} -1\\r=\sqrt[15]{\frac{10,000}{2,745}} -1\\r=0.0900 = 9.00\%

The annual rate of interest for this investment is 9.00%.

3 0
2 years ago
In your opinion, what would be the consequences if the memory manager and the processor manager stopped communicating with each
Tomtit [17]

The consequence if a memory manager and a processor manager stopped communicating would lead to a negative outcome as they need to communicate in order for the process managaer to process the information that is being delivered in and out and for the memory manager to store each of that information that could be later use in the future and for privacy purposes. If they weren’t able to communicate, the process would be disrupted, causing negative outcomes such as having information to be leaked and to have no organization at all.

4 0
2 years ago
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