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NEW QUESTION: 1
An analyst uses a temporary supernormal growth model to value a common stock. The company paid a $2 dividend last year. The analyst expects dividends to grow at 15% each year for the next three years and then to resume a normal rate of 7% per year indefinitely. The analyst estimates that investors require a
12% return on the stock. The value of this common stock is closest to:
A. $48.
B. $71.
C. $53.
Answer: C
NEW QUESTION: 2
Managers at a fast food chain that employs mostly minimum wage workers learn that a new law may increase the minimum wage in the United States by 25 percent. Assuming demand for labor is NOT perfectly elastic, how will this affect the market outcome?
A. Price and quantity of fast food will not change, but the fast food chain will capture more value.
B. At any market price, fast food restaurants will be willing to supply less food.
C. Demand for fast food will increase, offsetting the change in price due to decreased supply.
D. As more people will be willing to work for the higher wage, the fast food chain's output will increase.
Answer: B
Explanation:
Topic 3, Financial Accounting
NEW QUESTION: 3
Sometimes its important to remove an RODC from your forest or domain.
However, its important that you follow a simple rule whilst removing RODC's.
What is this rule?
A. Your forest must only consist of RODC's if you want to remove them
B. All writable domain controllers must be removed before RODC's can be detached
C. There are no rules for removing RODC's
D. All RODC's must be detached before removing a final writable domain controller
Answer: D
Explanation:
After researching this and using logic, we need a writable DC for a RODC to exist, therefore we have to remove all RODC's before removing the last writable DC.