The constant dividend growth model:
A) can be used to estimate the cost of equity for any corporation.
B) is applicable only to firms that pay a constant dividend.
C) is highly dependent upon the estimated rate of growth.
D) is considered quite complex.
E) considers the risk of the firm.
C
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Which of the following is a current business trend?
A) eliminating the marketing function B) integrating marketing with other business functions C) for-profit businesses becoming not-for-profit businesses D) fewer CEOs having experience in marketing E) isolating marketing from other business functions
Correction of a material error occurring in prior periods is reported as
a. an adjustment of earnings of the current period, only. b. a retroactive restatement of prior years earnings, only. c. a retroactive restatement of prior years earnings and an adjustment to the beginning balance of retained earnings for the current period. d. an adjustment of earnings of the current and future periods. e. an adjustment of earnings of the current period, and an adjustment to the ending balance of retained earnings for the current period.
Under a fixed exchange rate regime, when the domestic currency is overvalued, the central bank must ________ the domestic currency to keep the exchange rate fixed; as a result, it ________ international reserves
A) purchase; loses B) sell; loses C) purchase; gains D) sell; gains
Briefly discuss futures options. What are they, and what advantage do they offer an investor?
What will be an ideal response?