The constant perpetual growth model is applicable primarily to those firms which:
A. have multiple rates of dividend growth.
B. have irregular dividend growth rates.
C. pay dividends that increase at a steady rate.
D. adhere to a residual dividend policy.
E. maintain a constant dividend payout ratio.
Answer: C
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An obligation to pay a negotiable instrument subject to conditions precedent is known as:
a. primary liability. b. secondary liability. c. acceptance. d. dishonor.
The firms eliminated by competition tend to be those that served the consumers most efficiently.
Answer the following statement true (T) or false (F)
The following data were taken from the accounting records of Li Company at December 31, Year 1. All adjustments have been recorded.Service revenue166,000Retained earnings95,000Accounts receivable26,500Salaries expense88,000Operating expense15,400Accounts payable22,800Supplies expense760Prepaid rent4,000Common stock90,000Supplies400Dividends2,400Insurance expense1,600Rent expense20,000Unearned revenue1,530Required:a) Prepare an income statement for Li Company for Year 1.b) Determine the balance in retained earnings at the end of Year 1.
What will be an ideal response?
Which source of financing for new businesses does NOT involve money?
A) bank loans B) bartering C) angel investing D) peer-to-peer lending E) venture capital