Which of the following statements is CORRECT?
a. If a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
b. The stock valuation model, P0 = D1/(rs ? g), can be used to value firms whose dividends are expected to decline at a constant rate, i.e., to grow at a negative rate.
c. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate.
d. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.
e. The constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years.
b
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Answer the following statement true (T) or false (F)
Which of the following areas of financial reporting is most suitable for applying data analytics techniques?
A. Variance reporting. B. Calculating the components of equity. C. Depreciation. D. Evaluation of estimates and valuations.
Decker EnterprisesBelow are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statementCurrent
Projected Salesna 1,500 Costsna 1,080 Profit before taxna 420 Taxes (25%)na 105 Net incomena 315 Dividendsna 95 Balance sheetsCurrentProjected CurrentProjectedCurrent assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 Based on the projections, Decker will have A. a financing surplus of $36 B. a financing deficit of $36 C. a financing surplus of $255 D. a financing deficit of $255 E. zero financing surplus or deficit
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A) an inventory graph. B) a distribution inventory. C) an inventory drawing. D) an inventory profile.