Author Question: All of the following are false EXCEPT A) the transit float is caused by the time lapse from the ... (Read 114 times)

Chloeellawright

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  • Posts: 588
All of the following are false EXCEPT
 
  A) the transit float is caused by the time lapse from the moment a customer mails a check until
  the firm begins to process it.
  B) the processing float is caused by the time necessary for a bank to process the check.
  C) the mail float is caused by the time lapse from the moment a firm receives the check and
  begins to process it.
  D) the disbursing float derives from the fact that funds remain in a firm's bank account until its
  payment check is cleared through the banking system.

Question 2

Bubble.com Inc currently pays no dividends. You overhear the CFO tell the CEO that the plan is to begin paying annual dividends in 5 years. The first dividend will be 2 and dividends are expected to grow at 5 in perpetuity thereafter.
 
  Given a required return of 11, what should the price of the stock be today?
  A) 19.78
  B) 20.77
  C) 21.96
  D) 24.24
  E) 24.37



memslove

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Answer to Question 1

D

Answer to Question 2

C



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