When applying the earnings multiplier model all of the following will cause the required rate of return, k, to change except
a. Changes in the real risk free rate
b. Changes in the retention rate
c. Changes in the rate of inflation
d. Changes in the risk premium for common stock
e. All of the above changes will cause a change in the required rate of return
B
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Which of the following measures a company's ability to pay its current liabilities?
a. earnings per share b. inventory turnover c. current ratio d. number of times interest charges earned
Wheat Corporation pays $532,000 for 100,000 shares to acquire 45% common stock of Grain Investments, Inc. on January 5, 2018. Wheat Corporation sells 20,000 shares for $40,000 on January 6, 2018. Which of the following is the correct journal entry for the transaction on January 6, 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
When delivering negative organizational news, it is necessary to be candid about what is happening, why, and its effect on employees, customers, and the public
Indicate whether the statement is true or false
All of the following statements regarding liabilities are true except:
A. Unearned future wages to be paid to employees should be recorded as liabilities. B. A liability is a probable future payment of assets or services. C. Liabilities can involve uncertainty in whom to pay. D. Information about liabilities is more useful when the balance sheet identifies them as either current or long term. E. For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services.