Which of the following statements is true? A) The DDM cannot be used to value companies...
Which of the following statements is true?
|
|||
|
|||
|
|||
|
Which one??
Homework Answers
Option A is correct.
The first and foremost assumption of DDM approach is that a
company pays dividend. The dividend is then discounted to present
to arrive at the value of share.
NOTE:- if this was helpful, do upvote.
Add Answer to:
Which of the following statements is true?
A)
The DDM cannot be used to value companies...
Identify which of the following statements is true. A partnership cannot have an NOL carryback or...
Identify which of the following statements is true. A partnership cannot have an NOL carryback or carryforward. A partnership cannot make charitable contributions. Dividends received by a partnership from a domestic corporation are included in the partnership's ordinary income. All of the above are false the following statements en
Which of the following statements is correct? a. If a firm follows the residual dividend model,...
Which of the following statements is correct? a. If a firm follows the residual dividend model, then a sudden increase in the number of profitable projects would be likely to lead to a reduction of the firm's dividend payout ratio b. The clientele effect explains why so many firms change their dividend policies so often c. One advantage of adopting the residual dividend model is that this policy makes it easier for a corporation to attract a specific and well-identified...
Which of the following statements about preferred shares is false? O Retractable preferred shares allow the...
Which of the following statements about preferred shares is false? O Retractable preferred shares allow the shareholders to bring forward the maturity date. O The most common preferred shares in Canada are straight preferred shares. O Preferred shareholders can force bankruptcy if the firm defaults on the dividend payment. O Floating rate preferred share dividends are reset periodically. Wildhorse Industries after-tax cost of debt is 8.4% and the company has an effective tax rate of 30%. What is the company's...
Which of the following statements concerning preferred stocks is true? The par value of a stock...
Which of the following statements concerning preferred stocks is true? The par value of a stock is always the same as the initial selling price. Preferred stock dividends per share are normally increased as the earnings of the firm increase. Preferred stockholders have a prior claim on the income and assets of the firm as compared to the claims of lenders. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems.
Which of the following statements concerning preferred stocks is true? The par value of a stock...
Which of the following statements concerning preferred stocks is true? The par value of a stock is always the same as the initial selling price. Preferred stock dividends per share are normally increased as the earnings of the firm increase. Preferred stockholders have a prior claim on the income and assets of the firm as compared to the claims of lenders. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems.
Which of the following statements is FALSE? Group of answer choices The WACC can be used...
Which of the following statements is FALSE? Group of answer choices The WACC can be used throughout the firm as the company wide cost of capital for new investments that are of comparable risk to the rest of the firm and that will not alter the firm's debt-equity ratio. A disadvantage of the WACC method is that you need to know how the firm's leverage policy is implemented to make the capital budgeting decision. The intuition for the WACC method...
Which of the following statements is FALSE? A. A firm's cost of equity capital is directly...
Which of the following statements is FALSE? A. A firm's cost of equity capital is directly related to investors' required rate on the firm's stock. B. When using the dividend growth model to estimate required return, the sustainable growth rate may be used to approximate the growth rate in dividends. C. A firm's cost of debt may be estimated using the average coupon rate on the firm's bonds. D. The capital asset pricing model may be a preferred option for...
Question 13 (1 point) Which of the following statements is correct? A) When calculating the cost...
Question 13 (1 point) Which of the following statements is correct? A) When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation. B) When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible for the corporation. OC) If a company's beta increases, this will increase the cost of equity, but never its WACC. D) Because of tax effects,...
Which of the following statements is correct? a. The tax code encourages companies to pay dividends...
Which of the following statements is correct? a. The tax code encourages companies to pay dividends rather than reinvest earnings. b. Companies may pay too high a price in a large open market repurchase if it takes too long to complete. c. An investor's capital gains from selling stock in a repurchase are always taxed at a higher rate than if the distribution were dividends. d. The stronger management thinks the clientele effect is, the more likely the firm is...
Which one of the following statements about the preferred stock is TRUE? Unlike dividends paid on...
Which one of the following statements about the preferred stock is TRUE? Unlike dividends paid on common stock, dividends paid on preferred stock are a tax-deductible expense Preferred stock is a hybrid product. It shares a lot of similarity with debt, but the tax treatment is different Non-cumulative dividends on preferred stock payable during the next twelve months are considered to be a corporate liability There is no significant difference in the voting rights granted to preferred and common shareholders
Identify which of the following statements is true. A partnership cannot have an NOL carryback or carryforward. A partnership cannot make charitable contributions. Dividends received by a partnership from a domestic corporation are included in the partnership's ordinary income. All of the above are false the following statements en
Which of the following statements about preferred shares is false? O Retractable preferred shares allow the shareholders to bring forward the maturity date. O The most common preferred shares in Canada are straight preferred shares. O Preferred shareholders can force bankruptcy if the firm defaults on the dividend payment. O Floating rate preferred share dividends are reset periodically. Wildhorse Industries after-tax cost of debt is 8.4% and the company has an effective tax rate of 30%. What is the company's...
Question 13 (1 point) Which of the following statements is correct? A) When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation. B) When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible for the corporation. OC) If a company's beta increases, this will increase the cost of equity, but never its WACC. D) Because of tax effects,...
Most questions answered within 3 hours.
-
You have a 825.3 mL sample of 2.754 M HA (Ka =
4.49⋅10−4). Calculate the pH...
asked 50 minutes ago -
The blues made its way into many kinds of music. Eric Clapton,
The Beatles, and Elvis...
asked 2 hours ago -
8. A wave in a string has a wave function given by: y (x, t) =...
asked 1 hour ago -
If you’re standing at the bottom of a hill and asked to evaluate
it while being...
asked 3 hours ago -
1. Which region has taken the lead in the world of
e-waste handling?
a) European Union...
asked 3 hours ago -
A 8.15- g bullet from a 9-mm pistol has a velocity of 366.0 m/s.
It strikes...
asked 5 hours ago -
The outstanding bonds of Alpha Extracts have a yield to maturity
of 7.4 percent and a...
asked 5 hours ago -
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 6 hours ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 6 hours ago -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 7 hours ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 7 hours ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 7 hours ago