If a company's free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock is in equilibrium.
A. The company's stock's dividend yield is 5%.
B. The value of operations is expected to decline in the future.
C. The company's WACC must be equal to or less than 5%.
D. The company's value of operations one year from now is expected to be 5% above the current price.
E. The expected return on the company's stock is 5% a year.
Answer: D
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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$357,000?debitAllowance for uncollectible accounts 520?debitNet Sales 802,000?creditAll sales are made on credit. Based on past experience, the company estimates 0.4% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A. Debit Bad Debts Expense $3208; credit Allowance for Doubtful Accounts $3208. B. Debit Bad Debts Expense $1948; credit Allowance for Doubtful Accounts $1948. C. Debit Bad Debts Expense $1428; credit Allowance for Doubtful Accounts $1428. D. Debit Bad Debts Expense $3728; credit Allowance for Doubtful Accounts $3728. E. Debit Bad Debts Expense $2688; credit Allowance for Doubtful Accounts $2688.
How did the legislature define whether a "copy" was created when addressing copyrighted materials and the Internet?
A) A work was officially copied when it was downloaded into a computer's memory or RAM. B) A work was officially copied when it was emailed to another person. C) A work was officially copied when it was viewed on a person's computer screen. D) A work was officially copied when it was hosted on a file-sharing Web host.
The presence of ________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets
A) noncollateralized risk B) free-riding C) asymmetric information D) costly state verification
In a parallel conversion strategy, the new system
A) is tested by an outsourced company. B) replaces the old one at an appointed time. C) and the old are run in parallel. D) is introduced in stages. E) is slowly converted from the old system.