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NEW QUESTION: 1
The market value of an entity's outstanding ordinary shares will be higher, everything else equal, if investors:
A. Expect lower dividend growth.
B. Have longer expected holding periods.
C. Have a lower required return on equity.
D. Have shorter expected holding periods.
Answer: C
Explanation:
The dividend growth model is used to calculate the cost of equity. The simplified formula is R is
The required rate of return, D is the next dividend, P is the share's price, and G is the growth rate in earnings per share. The equation is also used to determine the share price.
Thus, when investors have a lower required return on equity, the denominator is smaller, which translates into a higher market value.
NEW QUESTION: 2
You work as a project manager for PassGuide Inc. Which of the following processes will you use to build up an estimate of the monetary resources required to complete project activities?
A. Estimate costs
B. Plan quality
C. Determine budget
D. Control costs
Answer: A
NEW QUESTION: 3
A goods receipt for a purchase order is posted, creating inventory management documents.
Which additional documents are created for Warehouse Management? (Choose two)
A. A transfer requirement
B. A delivery document
C. A transfer order
D. A controlling document
Answer: A,C