Investors receive dividends as payoffs for investing in equity shares. Thus the value of a share should

Question:

Investors receive dividends as payoffs for investing in equity shares. Thus the value of a share should be calculated by discounting expected dividends. True or false?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

See More Books

Question Posted: Mar 17, 2012 06:13 AM

See More Questions

True or false? Explain. a. The value of a share equals the discounted stream of future earnings per share. b. The value of a share equals the PV of earnings per share assuming the firm does not grow,...
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
A steam turbine receives a flow of 3 kg/s water at 1200 kPa, 350 C and velocity of 15 m/s. The steam exits the turbine at 100 kPa, 150 C and very low velocity. Find the specific work and the power...
Jose is unmarried with no qualifying children. He has $8,300 of 2013 wages and is otherwise eligible for the earned income credit. Jose has $200 of interest income and no for AGI deductions. a. What...
Draw UML state diagrams for a bus mastership transaction in which one side shows the CPU as the default bus master and the other shows the device that can request bus mastership.
Discuss why AIDS is a reportable disease.
Greg Stock is attempting to monitor a filling process that has an overall average of 705 cc. The average range is 6 cc. If you use a sample size of 10, what are the upper and lower control limits for...
Given the economic devastation of natural disasters such as floods, what strategies can insurance companies and government entities utilize to meet their long term debt responsibilities?
The Kare Counseling Center was incorporated as a not-for-profit organization 10 years ago. Its adjusted trial balance as of June 30, 2020, follows. 1. Salaries and fringe benefits were allocated to...
Weyerhaeuser Company grows, harvests, and processes timber and develops residential real estate. Incorporated in Washington State, the company has four business segments: timberlands; wood products;...
Some analysts trumpet the saying "Cash is King." They mean that cash is the primary fundamental that the equity analyst should focus on. Is cash king?
Two blocks, of masses $m$ and $M$, are connected by a single spring of forceconstant $k$. The blocks are free to slide on a frictionless table. Beginning with the Lagrangian, find the...
3. A precision instrument modelled as a block of mass m = 2kg and a spring k = 98 N/m rests on a table that is subject to a harmonic acceleration (t) = 0.1 sin 6 t (m/s2), as shown in figure QB1.3....
A rotating shaft carries three unbalanced masses of 4 kg, 3 kg, and 2.4 kg at radial distances of 75 mm, 85 mm and 50 mm and at the angular positions of 45, 135 and 240 respectively. The planes of...
Combine with "laser cladding" topic, please give an example of forced vibration of a single- degree-of-freedom system, and try to construct a system to reduce the vibration by adding a spring and...
Consider a cantilever beam (L) meters long that supports a concentrated load (P) at its free end. A. Draw the bending moment diagram, showing the bending at 1/4 L increment toward the beam's free end...
is a condition where an element of a surface or an axis is a straight line. Straightness Flatness Circularity Cylindricity
Three taxpayers each wish to make a BADR claim in relation to a qualifying disposal made during 2020-21. Their previous claims are as follows: (a) Gemma made a BADR claim in relation to a gain of...
B made an issue of 150,000 $1 ordinary shares at a premium of 20% the proceeds of which is received by cheque. What is the correct journal to record this? A. Bank Share capital Share premium B. Bank...
Write a rate law for if measurements show the reaction is first order in nitrogen trioxide and second order in oxygen. NO3(g) + O(g) NO(g) + O3(g)
Q1. Bond Prices For example, if a $100,000 bond is issued at 102 the bond will sell for 102% of the face value or for $102,000. a. A $100,000 bond issued @ 99 will sell for ___________ of the face...
Q1. Yield is the cost to the issuing entity for borrowing and the return to the investor/creditor for lending the money. Yield is also referred to as the market rate and the effective rate of...
Q1. The Allied Waste bond has a ___________coupon rate (also referred to as the stated rate or the face rate) that determines the (___________ / effective interest rate). An investor/creditor holding...
Large-scale industrial production - accompanied by massive technological change, expanding international communication networks, and pro-growth government policies-generated rapid economic...
How can this relate to individuals who have had a TBI and are currently homeless or marginally housed?
1. According to Marxian theory, are crises an economic process inherent to the accumulation dynamics of current capitalism? Justify your answer. 2. According to Marxian theory, what do you consider...

Investors receive dividends as payoffs for investing in equity shares. Thus the value of a share should

Question:

Step by Step Answer:

The first sentence is true dividends are the payoff to equity investing The sec...View the full answer

Financial statements

Students also viewed these Accounting questions