The required rate of return necessary for the dividend valuation model can be estimated using
A) the Capital Asset Pricing Model.
B) comparisons to the rates of return on stocks of similar risk.
C) a subjective assessment of the return required over and above less risky investments such as government bonds.
D) any or all of the above.
Answer: D
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The FIFO approach to process costing assumes that items in beginning inventory were started and completed in the current period
Indicate whether the statement is true or false
Which of the following is NOT suggested for the use of presentation aids?
a. Be sure your visual and audio aids are in place before starting. b. Present and explain each one. c. Stand to one side of the visual and talk to the audience making sure everyone can see the visual. d. Pass around your visual.
Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Product B32LProduct K84BSales$46,000 $27,000 Variable expenses$13,800 $14,670 Fixed expenses for the entire company were $42,550. If the sales mix were to shift toward Product B32L with total sales remaining constant, the overall break-even point for the entire company:
A. could increase or decrease. B. would not change. C. would increase. D. would decrease.
Stevens Company has had bonds payable of $10,000 outstanding for several years. On January 1, 2018, when there was an unamortized discount of $2,000 and a remaining life of 5 years, its 80% owned subsidiary, Matthews Company, purchased the bonds in the open market for $11,000. The bonds pay 6% interest annually on December 31. The companies use the straight-line method to amortize interest revenue and expense. Compute the consolidated gain or loss on a consolidated income statement for 2018.
A. $2,000 loss. B. $3,000 gain. C. $1,000 gain. D. $3,000 loss. E. $1,000 loss.