Gordon growth model - Study guides, Class notes & Summaries

WGU C214 Final Exam Questions And Answers Latest Update With Complete Solution Rated A. Coupon Rate - CORRECT ANSWER-The interest rate that a company promises to pay on bonds Market Rate - CORRECT ANSWER-The interest rate on other comparable bonds Par Value - CORRECT ANSWER-The amount payable on maturity of the bond Market rate - CORRECT ANSWER-Same as YTM - Yield to Maturity Gordon Growth Model - CORRECT ANSWER-Assumes stable growth rates and does not incorporate risk CAPM M...

What is included in the Income Statement and NOT in the Statement of Cash Flows? - Depreciation Expense Computation of Net Income: A co. sold products in 2014 for $120k and collected $100k cash and remainder in 2015. Co. incurred $70k expenses for 2014 and paid $100k which included $30k for expenses incurred in 2013. What is net income for 2014? - Computation of Net Income (R-E=NI) $50,000 Net Income = $120k - $70k = $50k, or Revenues - Expenses Incurred = Net Income Retained Ear...

WGU-C214 Finance Management Exam With 100% Correct Answers 2023 DFN (Discretionary Financing Needed) Projected Total Assets - Projected Total Liabilities - Projected Equity SGR (Sustainable Growth Rate) ROE x (1-Dividend Payout Ratio) CFO (Cash Flow from Operations) Net Income + Depreciation in both Current Assets and Current Liabilities CFI (cash flow from investing activities) Change in P,P&E + Depreciation CFF (cash flow from financing) Change in Equity + Change in L...

Intrinsic value: high confidence in your model means? - correct answer high confidence means the market price will converge to the intrinsic value over time Intrinsic value: number of analysts - correct answer the more analysts the less the misspricing Present value models - correct answer · estimate value as present value of expected future benefits · future benefits are cash ...

TSI Testing 126 Questions with Verified Answers In 2010, talk show host Oprah Winfrey and novelist Jonathan Franzen kissed and made up after a nine-year feud. In 2001, Franzen was disinvited from appearing on Winfrey's TV show to pitch his novel The Corrections after he made it clear that he was unhappy about the book's being chosen for the Oprah Book Club. Describing his work as "in the high-art literary tradition," Franzen said he didn't want to be associated with the Club, which he a...

WGU C214 Financial Management 2023/ 2024 Exam| Questions and Verified Answers| Grade A+ Q: What do you do if the question says that the dividend was paid RECENTLY or the dividend was JUST paid? Answer: First you must calculate the expected dividend. Q: How do you know when to use the Gordon Growth model to answer a question? Answer: If you see the word GROW or GROWTH in the question, then it's a GGM question. Q: What is the CAPM model? Answer: Capital Asset Pr...

WGU C214 Financial Management Exam Questions and Answers Net Income = - Answer- Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - Answer- Gross Profit Gross Profit - Operating Expenses - Answer- EBIT EBIT = - Answer- Sales - Costs - Depreciation EBIT = - Answer- Operating Profit or Operating Income EBIT - Interest Expense = - Answer- Earnings Before Taxes Earnings before Taxes - Tax Expense = - Answer- Net Income (NI) Retained Earnings - Answer- End RE = Beg RE + NI - Dividends...

C214 Financial Management WGU Test Questions And Answers Net Income = - ANSWER Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - ANSWER Gross Profit Gross Profit - Operating Expenses - ANSWER EBIT EBIT = - ANSWER Sales - Costs - Depreciation EBIT = - ANSWER Operating Profit or Operating Income EBIT - Interest Expense = - ANSWER Earnings Before Taxes Earnings before Taxes - Tax Expense = - ANSWER Net Income (NI) Retained Earnings...

WGU C214 Financial Management Exam Questions and Answers Net Income = - Answer- Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - Answer- Gross Profit Gross Profit - Operating Expenses - Answer- EBIT EBIT = - Answer- Sales - Costs - Depreciation EBIT = - Answer- Operating Profit or Operating Income EBIT - Interest Expense = - Answer- Earnings Before Taxes Earnings before Taxes - Tax Expense = - Answer- Net Income (NI) Retained Earnings - Answer- End RE = Beg RE + NI - Dividends...

Coupon Rate - Correct answer-The interest rate that a company promises to pay on bonds Market Rate - Correct answer-The interest rate on other comparable bonds Par Value - Correct answer-The amount payable on maturity of the bond Market rate - Correct answer-Same as YTM - Yield to Maturity Gordon Growth Model - Correct answer-Assumes stable growth rates and does not incorporate risk CAPM Model - Correct answer-Allows to determine expected return on stocks and incorporates risk How do pu...