If you want to value a firm but do not want to explicitly forecast its dividends, the simplest model for you to use is ________
A) the discounted free cash flow model
B) the dividend-discount model
C) the enterprise value model
D) None of the above models can be used if you do not want to forecast dividends or use of debt.
Answer: A
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Daniel is assessing his company's portfolio of products. One of them is the best-selling brand of mayonnaise, although this is now a slow-growing market. If Daniel uses the BCG matrix, he would classify this product as a
A. star. B. cloud. C. question mark. D. cash cow. E. dog.
Vanguard Company makes three products, M, N, and P, which come from a joint process. The joint costs for each batch of the products are: $80,000 for direct materials, $40,000 for direct labor, and $30,000 for indirect costs (overhead). Each batch produces 10,000 pounds of product M with a market value of $6 per pound; 5,000 pounds of N with a market value of $12 per pound; and 9,000 pounds of P with a market value of $10 per pound.Required:1) Determine the total amount of joint cost allocated to each of the products, assuming that the allocation is based on the weight of products produced. (Do not round intermediate calculations. Round each of your final answers to the nearest whole dollar.)2) Determine the total amount of joint cost allocated to each of the products, assuming that the
allocation is based on the market value of the products. (Do not round intermediate calculations. Round each of your final answers to the nearest whole dollar.) What will be an ideal response?
Customers moving up future purchases to the present is
A) market growth. B) stealing share. C) forward selling. D) forward buying.
Nike's common shares are currently trading at $57.12. Dividends on this stock are paid annually and are expected to grow at 2% per annum in perpetuity. Shareholders required return on this investment of 3%
The most recent dividend was paid yesterday and the next dividend will be paid in one year. How big was yesterday's dividend? A) $0.55 B) $0.56 C) $0.57 D) $0.60 E) $0.62