in the discounted cash flow model (aka. dividend valuation model) for cost of equity, if an asset has no expected dividend, its expected return would be best described as the
Answers
A method of valuation known as "discounted cash flow" (DCF) establishes the value of an investment based on its anticipated future cash flows.
Uses of discounted cash flow:DCF analysis aims to assess the value of an investment today by using projections of how much money an investment will generate in the future.It can aid those who are trying to decide whether to purchase securities or a firm. Business owners and managers can use discounted cash flow analysis to help them make decisions about operational and capital budgets.The value of an investment is ascertained using discounted cash flow analysis using the investment's projected cash flows.The projected discount rate is used to calculate the present value of anticipated future cash flows.If the DCF is more than the investment's current cost, the opportunity may yield profits and be worthwhile.Because it takes into consideration the rate of return anticipated by shareholders, businesses frequently utilize the weighted average cost of capital (WACC) as the discount rate.The fact that DCF relies on potentially erroneous future cash flow projections is a drawback.To learn more about weighted average cost of capital referhttps://brainly.com/question/15301026
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Related Questions
XYZ is an established business and has written a business plan in order to request additional funding from a local bank. Unlike a plan for a new business, their business plan will include which information?
Answers
Answer:
Growth Highlights
Explanation:
When a new business is to start up, and it requires funding it shall propose the business idea to investors, but it depends upon the discretion of investors whether or not to invest, and their results are dependent upon the expectations of the business idea.
Whereas when a established business requires further funds, it can state the statistical records and performance reports which shall highlight the growth achieved by the business already.
This shall ensure the investors about their returns in a more confident manner.
Funding from local bank shall include the growth results achieved till now, in order to create the investor confidence.
What are the annual cost from the pothole damage a city administrator with 100k annual budget?
Answers
a. The annual costs from pothole damage would be $156,000. b. The annual costs due to damage from collisions would be $72,000. c. The city manager would be able to lower overall expenditures.
a. The annual costs from the pothole damage can be calculated by multiplying the number of cars hitting potholes per week (15) by the average cost of damages per car ($200) and then multiplying that by the number of weeks in a year (52). So, Poisson distribution the annual costs from pothole damage would be
15 * $200 * 52 = $156,000.
b. The annual costs due to damage from collisions can be calculated by multiplying the number of collisions per month (1) by the average cost of each collision ($6,000) and then multiplying that by the number of months in a year (12). So, the annual costs due to damage from collisions would be
1 * $6,000 * 12 = $72,000.
c. Based on the given information, the recommendation would be to fix potholes. The annual costs from pothole damage are higher ($156,000) compared to the annual costs due to damage from collisions ($72,000). Therefore, by fixing potholes, the city administrator would be able to reduce the overall costs and provide a higher dollar benefit per dollar spent.
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The Complete question is
A city administrator with a $100,000 annual budget is trying to decide between fixing potholes or directing traffic after school at several busy intersections. Studies have shown that 15 cars hit potholes every week, causing an average of $200 in damages. Collisions at the intersections are less frequent, averaging one per month at an average cost of $6,000, although none have caused injuries or deaths. Use this information to answer the following questions. a. What are the annual costs from the pothole damage? b. What are the annual costs due to damage from collisions? c. Given the size of the annual budget, make your recommendation as to which project should be undertaken. Explain your answer in terms of dollar benefits per dollar spent.
what is renewable resource profit maximization exercise
Answers
The renewable resources wind, solar etc. have be-come very important in the gene-ration mix as a result of rising energy dem-and and environ-mental reasons. In addition tax is being imposed on high carbon emis-sion.
Optimal control of a renewable resource always involves two primary considerations. In order to compensate wind inter-mittency, generation resources such as gas plant, pump-ed storage unit etc. are employed due to their less-er start up time, lower ope-rating cost and good ramp-ing capabilities. First, the sole owner is concerned about how to maximize net revenue derived from harvesting the resource in question. Second, from the society’s viewpoint there is the important issue of conserving the biological population since the social costs of depleting such a resource may be enormous for future generations.
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an eight-year, annual payment, 7 percent coupon treasury bond has a price of $1,075. the bond's annual expected rate of return must be:
Answers
An eight-year, annual payment, 7 percent coupon treasury bond has a price of $1,075. The bond's annual expected rate of return must be 5.80%.
What is treasury bond?
As the US government issues them, treasury Bonds (also known as T-bonds) are a type of government debt security with a fixed rate of return and relatively low risk. Treasury bonds can be purchased from the US Treasury directly, through a bank, broker, or mutual fund provider. T-bonds are one of the safest investment options, so investors buy them to pay for their school, supplement their retirement income, and guarantee a constant return even during difficult economic times.
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5. Describe at least three investments you want
to make with your income. Explain whether
each one is an equity investment or a debt investment, and explain why you chose these
particular types of investments
Answers
With the money I'd make, I'd like to buy a car as an equity investment.
This item was chosen because it would assist me in getting to work and other locations on my own.
I'd also like to utilize my money to purchase or rent a house, which would also be an equity investment and provide me with a place to live for an extended length of time.
I'd like to invest in a powerful firm that wants to do good in the world; this is a debt investment that would offer the world a strong face.
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The job description index measure three of the following facets of employees satisfaction. Which is not measured by the Job Descriptive Index?
A. pay
B. Coworkers
C. Customers
D. the work its self
Answers
The Job Descriptive Index (JDI) is a widely used tool for measuring job satisfaction. The correct answer is option c.
It is designed to assess five facets of job satisfaction, including pay, the work itself, promotion opportunities, supervision, and coworkers. Each of these facets is measured on a scale ranging from very satisfied to very dissatisfied.
Pay refers to the compensation an employee receives for their work, including salaries, bonuses, and benefits. Coworkers refer to the relationships an employee has with their colleagues and how well they work together as a team. The work itself refers to the tasks and responsibilities associated with the job and how fulfilling and challenging they are for the employee.
However, the JDI does not measure customer satisfaction, which is a separate aspect of overall business performance. Customer satisfaction is generally measured through surveys or other feedback mechanisms to assess how well a company is meeting the needs and expectations of its customers.
While employee satisfaction and customer satisfaction are both important factors in the success of a business, they are distinct and require different approaches to measure and improve.
The correct answer is option c.
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In performing tests of controls over authorization of cash disbursements, which of the following statistical sampling methods would be most appropriate?
A. Variables.
B. Stratified.
C. Ratio.
D. Attributes
Answers
In performing tests of controls over authorization of cash disbursements, the most appropriate statistical sampling method would be D. Attributes.
Attributes sampling is a statistical sampling method used to assess the presence or absence of certain characteristics or attributes within a population. In the context of testing controls over authorization of cash disbursements, the objective is to determine whether the controls are operating effectively. This involves evaluating the presence or absence of proper authorization for each cash disbursement.
Attributes sampling allows auditors to make conclusions about the population based on the sample results. It involves selecting a sample of items and evaluating whether the specific attribute of interest (in this case, proper authorization) is present or absent in each sampled item. This method provides a basis for determining the rate of compliance with the control objective.
Therefore, for testing controls over authorization of cash disbursements, the most appropriate statistical sampling method would be D. Attributes.
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3. The owner of a specialty delicatessen buys baskets, decorates and fills them with food items, and
sells them as one of the products in the shop. The entrepreneur sells an average of 130 baskets a
month The basket supplier charges $0.50 per basket. The entrepreneur would like to reduce his
variable costs and has found a basket supplier who will charge only $0.40 per basket. How much
will the delicatessen owner save in a year by changing suppliers?
Answers
Answer:
$156
Explanation:
he old price per basket is $0.50 per basket
the new supplier has a price of $0.40 per basket
Savings per basket is $0.10 ($.50- $0.40)
The average sales per month are 130 baskets.
The average savings per months will be
=$0.10 x 130
=$13
yearly savings will be
=$13 x 12 months
=$156
a firm finds that as it adds workers, each worker is adding less and less output to the production process. what must be true about average cost?
Answers
Average cost is increasing must be true about average cost .
What does "average cost" mean?
In economics, average cost or unit cost is determined by dividing the total cost (TC) by the quantity of a good produced (the output Q). The choice of how much to charge for commodities by businesses is strongly influenced by average cost.What is an example of typical cost?
The weighted-average cost is calculated by dividing the total inventory purchased during the quarter ($113,300) by the total inventory count from that quarter (100), yielding an average cost per unit of $1,133.
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Select the correct answer.
Which pricing strategy is a company using when it sells a printer at a low price but the ink cartridges designed for that model are relatively
expensive?
A promotional pricing
captive product pricing
C. product line pricing
D. product bundle pricing
E.
optional product pricing
Answers
Answer:
B.
Explanation:
Captive product pricing means the company baits you in to purchasing a seemingly cheap main product but the add-ons are expensive
Answer:
E
Explanation: Is that right
Max is using a search engine to do research on trends in his industry when he comes across a website that isn’t necessarily related to his research–but is interesting and engaging. Without realizing it, Max spends over an hour browsing through the webpage’s numerous articles and links. When his boss asks him if his research report will be ready by the end of the day, Max isn’t sure how to respond. He’s hardly done any work–but it’s not like he was purposely avoiding work. He was using the search engine for the purpose of research, after all. It’s not his fault that the search results weren’t very relevant. Max is considering asking his boss for an extension on his deadline so that he can spend more time researching. What do you think? What should Max do?
Answers
In this situation, Max has to first give his boss some advance notice that he wont be able to complete the report before deadline, explain himself briefly as to why that is, then ask for more time to be able to complete the task.
What is a deadline?A deadline indicates that a task or project is anticipated to be finished by that date and time. There is a clear expectation of what must be provided and by when thanks to deadlines. Employees are able to take charge of their work in this way and include deadlines into their time management techniques.
It's critical to schedule deadlines in advance because your work may be delayed. Recognize that some resources might be delayed and that some people might not be available. You may prevent the disaster of missing a deadline by making plans in advance.
Deadlines are crucial in business for a variety of reasons. They establish standards and encourage productive behavior in the workplace.
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you work in an organization with multiple project managers who get together in the company's lounge to relax or talk about the day's events. one of the project managers starts discussing with you the need for some processes and practices to be more efficient. what approach is normally taken to achieve the results that the project manager is describing? answers a. reserve analysis b. swot analysis c. kaizen d. gold plating
Answers
Answer:
Of course B, Swot analysis, Have a nice day!
Which part of the business plan identifies plans for pricing policies?a.Self-analysisb.Trading area analysisc,Proposed marketing pland.Product description
Answers
How you'll persuade clients to acquire your goods or services is covered in the business plan's marketing section.
What is a marketing example?In an essence, it is an effort to make customers aware of a business's offers, that could include both physical goods for sale also services rendered. Advertising on television, billboard at the edge of the road, magazine ads, etc.are typical illustrations of promotion in action.
What exactly does marketing entail?Marketing management is in charge of offering post-purchase support in order to keep customers, promote brand loyalty, and improve the company's reputation. To gauge consumer satisfaction, it also needs to get feedback from them.
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as companies continue to develop women and minorities for management positions, they:
Answers
As companies continue to develop women and minorities for management positions, they are Promote Diversity and Inclusion,Enhance Talent Pool,Improve Decision-Making.
As companies continue to develop women and minorities for management positions, they:
Promote Diversity and Inclusion: By focusing on developing women and minorities for management positions, companies promote diversity and inclusion within their leadership ranks.
Enhance Talent Pool: Developing women and minorities for management positions expands the talent pool from which companies can draw their future leaders.
Improve Decision-Making: Increasing the representation of women and minorities in management positions brings diverse viewpoints to the decision-making process.
Foster Employee Engagement and Retention: When companies invest in the development of women and minorities for management positions, it sends a powerful message to all employees that diversity is within the organization.
Meet Customer Expectations: In today's diverse marketplace, customers increasingly expect companies to demonstrate diversity and inclusivity in their leadership ranks. By developing women and minorities for management positions, companies can better understand and meet the needs of their diverse customer base, leading to increased customer satisfaction and loyalty.
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an individual employee or applicant cannot exercise his or her rights under any of the federal antidiscrimination laws without sufficient evidence.
Answers
According to the principles of anti-discrimination law, it is FALSE that individual employee or applicant cannot exercise their rights under any of the federal anti-discrimination laws without sufficient evidence.
This is because the anti-discrimination law and whistleblower protection under the No Fear Act allow employees only to provide a reason for anti-discrimination conduct from the employers; the employees don't need to provide sufficient evidence before they exercise their anti-discrimination right.
Anti-Discrimination law covers discrimination on issues relating to any of the following:
Race, color, religion, sex, and national origin, pregnancy, disabilities, etc.
Hence, in this case, it is concluded that the correct answer is "False."
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In response to threats from such companies as Amazon, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________. Group of answer choices
Answers
Answer:
Re-intermediation
Explanation:
Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.
So, when established manufacturers by-pass Amazon (which is an intermediary between buyers and sellers) by adding online services to their existing offerings, they have done a re-intermediation.
PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
When measuring the return on an investment, the (annual, compounded, nominal, real) interest rate accounts for inflation, while the (annual, compounded, nominal, real) interest rate does not.
Answers
Answer:
Real
Explanation:
So, lets go over the basics of the differnt types of intrest rates.
There is nomial and real.
Nomial is the basic rate, which you can just think of as this:
For every 1% of a nomial rate that is 100 dollars, you get 1 dollar.
Real intrest rate is more complex, for it must factor in the inflation to this as well. This can be though of like this:
For every 5% of a real rate that is 100 dollars, if there is a 4% inflation, then you get 1 dollar.
Looking at your two answers, we can instantly say that:
When measuring the return on an investment, the real intrest rate accounts for inflation.
Now, the other question is basically the opposite, asking when measuring the return on an investment the ___ intrest rate does not account for inflation.
Well, we already have seen above that the nomial intrest rate is for more simple, and does not include the inflation.
So the answer to the second box is:
when measuring the return on an investment the nomial intrest rate does not account for inflation.
Answer:real
Explanation:
Specialization can help a countrys evonomy by?
Answers
Answer:
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why are hedge funds considered a high risk of investment
Answers
Answer: the huge potential for money loss.
Explanation: hedge funds are considered to be high-risk investments because of the huge potential for money loss. Again, these funds are primarily controlled by hedge funds managers, and with pools of money going into investments, there is likely going to be some loss.
Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy
Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.
Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:
Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:
What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?
Answers
1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.
Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.
2. The real return on my investment in Amazon.com Inc was a net loss of 7.12% or $667.60.
3. The company I selected to buy its stock three years ago was Amazon.com Inc.
4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.
5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.
6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.
What is the stock investment?Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.
The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).
Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)
Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)
Tax (10%) = $1,024.40 ($10,244 x 10%)
Inflation (3%) = $307.32 ($10,244 x 3%)
Administration fee on sales (2%) = $204.88 ($10,244 x 2%)
Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)
Loss on returns = $667.60 ($8,707.40 - $9,375)
Loss percentage = 7.12% ($667.60/$9,375 x 100)
Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.
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Why is international trade important to most countries?
A. Trade allows countries to acquire natural resources not found in
their own territories.
B. Trade ensures that countries will not create trade deficits that
harm their economies.
C. Trade protects countries from economic competition with
neighboring countries.
D. Trade encourages countries to produce all the goods their citizens
need.
Answers
The transfer of welfare's, services, commodities among the nation for financial gain is called international trade.
The correct answer is:
Option A. Trade allows countries to acquire natural resources not found in their territories.
This can be explained as:
Import and export of sources between the countries allow the nation to grow their market and assets.Because of the international trade modes, the availability of the assets not produced in their country is available for the citizens to utilize.It gives more employment and hence improves the nation's economy.Therefore, trade allows countries to avail resources that are found in their region.
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Answer:
A
Explanation:
Craig ferguson, an internal auditor for hhg online booksellers, had been investigating a case of embezzlement fraud for nearly two months. after searching personnel and company records, visiting with former employees, employing invigilation tactics, and finally interviewing several co-workers, craig concluded that lane flemming, head of the shipping and receiving department, was involved in a large kickback scheme, costing the company hundreds of thousands of dollars. finally, with evidence in hand, craig met with lane, presented his evidence, and convinced lane to confess that he was indeed the perpetrator.
required:
a. was the order of events in which craig conducted his investigation in accordance with appropriate theft act investigative methods?
b. when investigating a case of fraud, why is it important to work inward toward the prime suspect, saving a confronting interview until the end of the investigation?
Answers
The chief of shipping and receiving for the department was consulted before a decision was reached. The suspected criminal was then interrogated and asked questions. As a result, the auditor's investigation followed the correct steps for looking into a theft.
Why is it important to concentrate on the main suspect and postpone a confrontational interview until the investigation is finished?If someone is aware that they are under investigation for participating in fraudulent activities, they may escape the scene and be difficult to reach.
Why is internal scrutiny of the primary suspect so important?As the investigation progresses, investigative procedures will get closer to the primary suspect(s), finally leading to an interview with that person. By postponing interacting with the main suspect, you can gather enough information to conduct a persuasive, guided interrogation without giving your case away too soon (s).
Which of the following is a method of investigating a stolen act that frequently involves observing or hearing potential offenders?Covert operations sometimes entail watching or listening to potential fraudsters as part of investigation procedures for theft acts.
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During a group session, the only Persian member and another member ended up in a heated debate about cultural differences. The leader, also Persian, was caught off guard and unsure of how to address the situation in the moment, struggling with an internal conflict. What was the leader’s fear?A) Connecting with the Persian member.
B) Overidentifying with the non-Persian member.
C) Connecting with the non-Persian member.
D) Overidentifying with the Persian member.
Answers
Answer: D. Overidentifying with the Persian member.
Explanation:
The leaders fear in this case is over identifying with the Persian member. Since the leader is Persian, he is afraid that he could overidentify with the Persian member and this could bring about biasness with the way he handles the issue.
Therefore, based on the given options, the correct answer is D.
Five hair stylists at a salon perform 12 haircuts in two hours. One of the stylists,
Francesca, is leaving the salon after 10 years. Francesca usually performs 2
haircuts per hour. Which of the answer choices is correct?
Answers
The salon's average product of labor will decrease when Francesca leaves the salon in the given circumstances.
How is the average product of labor determined?The average product of labor (APL) gauges the typical output of each employee. The total product is simply divided by the workforce. The total output of labor divided by the quantity of workers employed, or Q/L, yields the average product of labor (APL). A popular metric for assessing labor productivity is the average product of labor.
The form of the AP curve on the left suggests that as more workers are hired, AP initially increases to a maximum before decreasing. The average output (or products) that each input produces is referred to as an "average product", factors of production like labor and land.
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What is the name for the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to target audiences?
Answers
Answer:
Integrated Marketing Communication
Explanation:
As the name implies, the concept of integrated marketing communication is aimed at leveraging the power that comes with the synergy between different marketing and communication tools and services such as consistent and repetitive advert placement, sales and promotional offers, coordinated and friendly marketing campaigns, and son on, all these carefully and strategically tailored towards the gradual and steady capture of a specific target audience over a certain period of time. These integrated marketing strategy or procedure is aimed towards such audience so that it would cover all aspects of the consumers wants in other to ultimately impact their deciak making and adoption of the product or services.
A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true? Select one: A. The manufacturer has effectively reduced its operating costs by outsourcing its activities. B. The manufacturer has sacrificed quality by using a lower-cost input. C. The manufacturer has efficiently capitalized on the experience and learning-curve effects within the company. D. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs. E. The manufacturer has enhanced utilization by allowing depreciation and other fixed costs to be spread over a larger unit volume.
Answers
Answer:
The correct answer is the option D: The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.
Explanation:
To begin with, when the company decided to buy a potato's farm it has successfully engaged into vertigal integration due to the fact that now they owned a business that is in a lower position than them with the purpose to embrace more of the industry thanks to the fact that now they have the most important resource secure for the production and that is why that they will no longer need to go to another farm. Moreover, with that action they will obviously reduce its transaction costs because now they owned the business who gaves them their primary commodity.
A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price
or a rebate of $300. Which is the better choice, and what is the extra amount saved?
Answers
Answer:
The 25% discount is better; it saves $12.50
Explanation:
A discount represents a straightforward reduction in price by the stated percentage. A rebate is a refund given after making payments.
For the 25% discount, the customer will make payments as follows.
25% discount deducted from the price of $1250
=$1250-( 25/100 x 1250)
=$1250- (0.25 x 1250)
=$1250 -312.50
=$937.50
For 300 rebate, the customer will pay $1250 and get a refund of $300. The net payment will be $1250 minus $300
=$1250-300
=$950
The 25% discount option is better because the customer pays less by $12.50( $950 - 937.50)
A. The 25% discount is better; it saves $12.50 more.
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what is democracy????
Answers
Explanation:
a system of government by the whole population or all the eligible members of a state, typically through elected representatives.
Answer:
A system in which government is selected by the citizens....
Which phrase describes insurance co-pays?
Answers
Coinsurance is a way of saying that you and your insurance carrier each pay a share of eligible costs that add up to 100 percent. For example, if your coinsurance is 20 percent, you pay 20 percent of the cost of your covered medical bills. Your health insurance plan will pay the other 80 percent.
If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would
Answers
We see a continuous fall in percentage the annual inflation rate over those years would decrease.
Annual inflation rate over yearsQuestion Parameters:
if the price level rose in three consecutive years from 100 to 120 to 140,
Generally the equation for the is mathematically given as
So, annual inflation rate is
x=[(120-100)/100]*100
x= 20%
In the year 3, price level was 140, hence, the inflation rate
y= [(140-120)/120]*100
y= 16.67%.
Since, we see a continuous fall in percentage the annual inflation rate over those years would decrease.
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