Montgomery Corp. has been paying dividends of $0.90 per share. Assume it has a cost of equity capital of 8.5%. Estimate the stock value per share of Montgomery Corp. using the dividend discount model (DDM) under each of the following separate assumptions:
1) The dividend will continue to stay at $0.90 per share in the future
2) The dividend will be $0.90 for the next two years and then will grow at a rate of 3.5%
(Please show your calculations)

Answers

Answer 1

1. The stock value per share of Montgomery Corporation is $10.59 ($0.90/8.5%).

2.  The stock value per share of Montgomery Corporation is $18 ($0.90/ (8.5% -3.5%).

Data and Calculations:

Dividend per share = $0.90

Cost of equity = 8.5%

Growth rate after two years =3.5%

The stock value is determined with the following formula:

P =  D(1)/(r - g)

P = stock price

D (1) = value of next year dividend

r = constant cost of equity capital

g = constant growth rate in perpetuity

Thus, the stock price of Montgomery Corp. will be $10.59 without factoring in the growth rate of 3.5%. The stock price will be $18 per share with the growth rate.

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Related Questions

as a project manager for a large construction company, Shaun decided to make the performance appraisal process as painless as possible for his crew. he spent a considerable amount of time creating performance standards he felt were reasonable, and after six months' time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. some employees were sent to vestibule training, and one even got a promotion with additional compensation. what did he fail to do correctly?
1, communicate the performance standards to the employees so they know what is expected
2, copy the HR department on all the results, within 24 hours of each appraisal
3, dismiss at least 10% of the work crew.
4, provide a pleasant environment for the appraisal such as a restaurant setting.

Answers

Answer:

he failed to communicate expected performance standards to the employees

Explanation:

this is because the employees could have continued with their current performance instead of changing it to adapt to the expected situation

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The team created to document procedures throughout the organization had several _________________________, or expectations of behavior: be on time for meetings, check email on evenings and weekends, and share cute animal videos found online.

a. team norms
b. stages of development
c. member roles
d. task conflicts

Answers

Answer:

a. team norms

Explanation:

Answer:

The team created to document procedures throughout the organization had several team norms, or expectations of behavior: be on time for meetings, check email on evenings and weekends, and share cute animal videos found online.

Read each transaction and identify the appropriate journal that it should be recorded in:
1. Owner withdrew supplies
2. Sale made on account
3. Payment to vendor on account
4. Payment received from customer on account
5. Purchases on account
6. Adjusting journal entry for supplies used
7. Owner withdrew cash
8. Company borrows money from bank
9. Record monthly depreciation
10. Close revenue accounts at month's end

Answers

Answer:5

Explanation:

Harold is part of a human resources team researching a cafeteria benefits program for his company. Once their research is complete and presented to management, Harold will return to his regular HR responsibilities. Harold is part of a temporary, self-managed, cross-functional team. True False

Answers

The answer for this question is true

Harold is part of a human resources team researching a cafeteria benefits program for his company. Harold is part of a temporary, self-managed, cross-functional team. The statement is true.

What is research?

Research refers to deep investigations of the data and information available to provide credentials with facts and figures to provide results that will utilize for the new research.

The Functions of the Human Resource department include the hiring and onboarding of a candidate in an organization. It also includes their training and development as well as performance appraisal by examining their performance in the organization.

The function of a cross-functional team is handling different working in different departments for a certain period of time, in this case, Harold is doing the same, working for the research department for a fixed project and then coming back to the HR department.

Therefore, the statement is True.

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What is clay item?Give your own no rude answer. ​

Answers

Answer:

things made up of wet clay minerals that are mixed in soil

Answer:

Clay is a type of fine-grained natural soil material containing clay minerals. Clays develop plasticity when wet, due to a molecular film of water surrounding the clay particles, but become hard, brittle and non–plastic upon drying or firing. ... Clay is the oldest known ceramic material.

Suppose that one US dollar buys 1.50 Swiss francs. A chocolate bar costs 0.75 francs in Switzerland. How much will the chocolate bar cost in US dollars?


Compared to country Y country X has a comparative advantage I’m producing computers. Country Y has a comparative advantage over country x in producing automobiles. How can the two countries best take advantage of this situation?

Answers

Answer: 1) 50 cents 2) they can trade with each other

Explanation of question 1

Ratio of dollars to francs

1: 1.5

The chocolate costs 0.75 francs. Divide 1.5 by 0.75 to find the multiplier in the ratio which is 2. Divide $1 by 2 to get 50 cents

Suppose the country of Lilliput exported $205 billion worth of goods and imported $449 billion worth of goods in the last calendar year. Calculate Lilliput's net exports. $ billion Lilliput is running a trade surplus. neither a trade deficit nor a trade surplus. a trade deficit.

Answers

Lilliput's net exports are ($244 billion).  Therefore, Lilliput is running a trade deficit of $244 billion.

A trade surplus implies that Lilliput's exports are greater in value than its imports. A situation of "neither a trade deficit nor a trade surplus" exists when the exports are equal in value to the country's imports.

Data and Calculations:

Lilliput's exports = $205 billion

Lilliput's imports = $449 billion

Net exports for Lilliput = ($244 billion)

Thus, Lilliput is running a trade deficit of $244 billion because its imports are worth more than its exports.

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How To Get To London Southend Airport Taxi?

Answers

Answer:

call to taxi. ....

Explanation:

.........

Listed below are selected transactions completed by Ridge Company during March of the current year.
Mar. 5
10
13
15
Rendered services on account to Quinton Co., Invoice No. 92, $3,250.
Rendered services on account to Martin Inc., Invoice No. 93, $4,500.
Received $5,000 in payment of monthly rent, which was due on March 1.
Received payment from Quinton Co. for invoice of March 5.
Received payment from Martin Inc. for balance due on invoice of March 10.
Received amount due from Thomas Co. on sale made in February, $5,200.
Recorded cash from services rendered for cash during the month, $15,750.
19
20
31
a. Record the transactions (including the invoice number), using the accompanying revenue journal and cash receipts journal.
b. Total and rule the revenue and cash receipts journals.
1. For individual items and totals to be posted to the subsidiary ledger or not to be posted, select "Yes" in the Post. Ref. column or below
the totals.
2. For individual items and totals to be posted to the general ledger, select the letter "G" (as a substitute for specific account numbers)
in the Post. Ref. column or below the totals.
If an amount box does not require an entry, leave it blank.
Page: 10
ACCTS. REC. DR.
EES EARNED CR.
POST
REF.
DATE
ACCOUNT DEBITED
INVOICE NO.

Answers

Answer:19

Explanation:

Cause of globalisation on the economy of South Africa

Answers

Answer:

There is a general consensus (see Rodrik, 1997; Frankel, 2000; Hemmer, 2001) that the driving forces behind economic globalisation are a reduction in transport and communication costs in the private sector, reduced policy barriers to trade and investment by the public sector, an increase in the availability of and ...

the current price of a stock is 200 if a coll option on this stock has a strike price of 201 the call is

Answers

The call in this scenario is known as Out of the money (OTM).

Out of the money is when an option has no intrinsic value but rather, has an extrinsic value.

Here, the current stock price is below the strike price of 201,then, we say that the call is out of money.

A call option is called Out of the money when the underlying price is trading below the strike price of the call.

Hence, the call in this scenario is known as Out of the money (OTM)

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Which of the following is the richest medium for communication?

✔ a. Face-to-face discussion
b. Telephone conversations
c. Voice mail
d. Written media
e. Electronic media

Answers

Answer:

"A' is the correct answer:-

Explanation:

Face-to-Face communication

Consider the market for land in central Pennsylvania, where land is used mainly for growing agricultural goods, as compared to the market for land in Rittenhouse Square, a small section of Philadelphia known for its cafes and shopping.
Because the supply of land in central Pennsylvania is_____, buyers in central Pennsylvania pay____for use of the land. The rental price of land is much lower in central Pennsylvania than in more densely populated areas like Rittenhouse Square. One possible explanation for this rent difference is that highly productive land is in low____.
Some entrepreneurs decide to build parking lots in Rittenhouse Square. The supply curve for land to be used for parking lots is_____.

Answers

The supply land in central Pennsylvania is perfectly inelastic, buyers in central Pennsylvania pay an interest rate for land use.

The rental price is lower in central Pennsylvania than Rittenhouse Square. One possible explanation for this rent difference is that highly productive land is downward sloping.

Some entrepreneurs decide to build parking lots on Rittenhouse Square. The supply curve for land to be used in parking lots is upward slopping.

Perfectly inelastic supply corresponds to one in which the demand curve is vertical, that is, the quantity demanded does not respond very strongly to price changes.

Buyers pay an interest rate for the use of the land, as the quantity demanded does not change if the price changes.

The rent price in central Pennsylvania is lower than in the Rittenhouse Squar due to the downward sloping curve that corresponds to lower interest expectations in the future, due to the elasticity of the supply.

The construction of parking lots in Rittenhouse Square is upward sloping because of the response to the profit that entrepreneurs hope to achieve in a perfectly elastic market.

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g What are the causes of rising government budget deficits when expansionary fiscal policy is used during recessions

Answers

Answer:

reduced economic activity  and increased government borrowing

Explanation:

Expansionary fiscal policy increases the level of aggregate demand, through either increases in government spending or reductions in tax rates. Expansionary policy can do this by (1) increasing consumption by raising disposable income through cuts in personal income taxes or payroll taxes; (2) increasing investment spending by raising after-tax profits through cuts in business taxes; and (3) increasing government purchases through increased federal government spending on final goods and services and raising federal grants to state and local governments to increase their expenditures on final goods and services.

Beacon Petroleum purchased an operational oil well for $8 million and expects to extract 16 million barrels over the 10-year life of the
well. Beacon estimated the well's salvage value to be zero. What is the firm's cost of goods sold for year 1 if it extracts 2.5 million
barrels of oil and sells 2.0 million barrels of oil?
O $1.00 million
O $1.25 million
O $0.25 million
O $2.25 million

Answers

Answer:1.00 million

Explanation:

Lone Star Meat Packers is a major processor of beef and other meat products. The company has a large amount of T-bone steak on hand, and it is trying to decide whether to sell the T-bone steaks as they are initially cut or to process them further into filet mignon and the New York cut.

If the T-bone steaks are sold as initially cut, the company figures that a 1-pound T-bone steak would yield the following profit:


Selling price ($2.40 per pound) $ 2.40
Less joint costs incurred up to the split-off point where
T-bone steak can be identified as a separate product 1.60
Profit per pound $ 0.80

If the company were to further process the T-bone steaks, then cutting one side of a T-bone steak provides the filet mignon and cutting the other side provides the New York cut. One 16-ounce T-bone steak cut in this way will yield one 6-ounce filet mignon and one 8-ounce New York cut; the remaining ounces are waste. It costs $0.19 to further process one T-bone steak into the filet mignon and New York cuts. The filet mignon can be sold for $3.60 per pound, and the New York cut can be sold for $3.30 per pound.

Required:
1. What is the financial advantage (disadvantage) of further processing one T-bone steak into filet mignon and New York cut steaks?
2. Would you recommend that the T-bone steaks be sold as initially cut or processed further?

Answers

1. The Lone Star Meat Packers' financial advantage of further processing one T-bone steak into Filet Mignon and New York cut steaks is $0.41 per pound.

Data and Calculations:

Selling price per pound of T-bone steaks = $2.40

Split-off costs = $1.60

Profit per pound =$0.80 ($2.40 - $1.60)

6-ounce filet mignon = 0.375 pounds (6/16)

8-ounce New York cut = 0.5 pounds (8/16)

Further processing costs = $0.19

New sales prices after further processing:

Filet Mignon = $1.35 ($3.60 x 0.375)

New York cuts = $1.65 ($3.30 x 0.5)

Total price per pound = $3.00

Total cost after further processing = $1.79 ($1.60 + $0.19)

Profit per pound after further processing = $1.21 ($3.00 - $1.79)

Financial advantage from further processing = $0.41 ($1.21 - $0.80)

Thus, the financial advantage of further processing one T-bone steak into Filet Mignon and New York cut steaks is $0.41 per pound.

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Calculate the present value of an asset worth $2,000 four years from now if the interest rate is 6 percent. Multiple Choice $2,480 $2,524.95 $1,520

Answers

The present value of the asset worth $2,000 four years from now is $1,584.19.

The formula for the present value is F*(1 + r)^-n

Given information

Future value = 2000

r = 6%

n = 4%

Present value = $2000*(1+6%)^-4

Present value = $2000*0.792094

Present value = $1584.187

Present value = $1,584.19

Hence, the present value of the asset worth $2,000 four years from now is $1,584.19.

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Your brother rarely filters his observations and often makes insensitive comments that
offend others. What skill does he need to work on?
ed
a. Code-switching
b. Self-monitoring
c. Multimodality
d. Circumscribing

Answers

Considering the situation described above, my brother needs to work on Self-Monitoring.

This is because Self-Monitoring is a term often used in sociology to describe the ability to is a personality trait that involves monitoring and regulating personal presentations, emotions, and attitudes towards his social environments and situations.

By mastering the habit of Self-Monitoring, my brother would be aware of his words, behaviors, and emotions towards its effects on the people around him.

Hence, in this case, it is concluded that the correct answer is "Self-Monitoring."

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Because self-managed teams were established at the Kinex plant, the number of electrical components produced has increased by 12% and workers seem to have more positive attitudes. Which statement is most likely TRUE about the self-managed teams at Kinex

Answers

The statement that is likely true about self-managed teams at Kinex is that self-managed teams generally control all of their own administrative tasks, including hiring and firing employees.

Self-managed teams made productivity increase and workers have more positive attitudes at Kinex, as this method of management ensures greater autonomy and authority for teams, making work more flexible, faster and more cooperative.

Therefore, self-managed teams are capable of increasing employee development, valuing work, motivation and, consequently, productivity.

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Richard's Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000. The return on assets is:

Answers

Based on the information given the return on assets is: 0.1 times.

Using this formula

Return on assets=Net income/Average assets

Where:

Net income=$100,000

Average assets=$1,000,000

Let plug in the formula

Return on assets=$100,000/$1,000,000

Return on assets=0.1 times

Inconclusion the return on assets is: 0.1 times.

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Jazz is a high-end handbag manufacturing firm based in Italy. It has achieved peak sales and profits in the home-country market. Jazz now wants to cater to the different fashion sensibilities of women across the world. The firm sets up facilities for production, marketing, and sales in the United States, India, and Japan. Which of the following is most likely the reason for Jazz's global expansion?

a. Diversifying its customer base
b. Accessing a deeper, more diverse talent pool of skilled managers
c. Obtaining investment capital for increased production
d. Accessing better raw materials

Answers

Answer: B

Explanation:

Accessing a deeper, more diverse talent pool of skilled managers is most likely the reason for Jazz's global expansion. The correct option is b.

What is a global expansion in business?

In terms of business, global expansion is when a business begins operating in another country, usually to take advantage of local market conditions or lucrative opportunities to increase revenue or reduce costs.

Global expansion refers to any business activity in a new territory, from selling products or services, dealing in raw materials, manufacturing, exporting, importing or employing. Global expansion is often linked to fast-growing businesses that recognise they can make more money if there is a demand for what they do abroad, or if they can reduce costs by operating in a new territory. It can also be about driving brand recognition in a new region or even leveraging market share from a competitor who is also active in that part of the world.

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Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:
Regular Model Deluxe Model Total Sales
$13,500,000 $12,240,000 $25,740,000
Less: Variable costs 8,100,000 7,344,000 15,444,000
Contribution margin $5,400,000 $4,896,000 $10,296,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000
Segment margin $4,200,000 $3,936,000 $8,136,000
Less:Common fixed costs 1,500,800
Operating income $6,635,200
Required:
1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. Regular models units Deluxe models units
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than whole percentage.) Round the amount of revenue to the nearest dollar.

Answers

1. The break-even points in sales units are computed as follows:

Break-even point (in units) = Direct fixed cost/contribution margin per unit

Regular model = 20,000 units ($1,200,000/$60)

Deluxe model = 3,529 units ($960,000/$272)

2. The Alo Company's Sales revenue to break-even, company-wide, is computed as follows:

Sales Revenue at break-even point:

= Fixed costs/Contribution margin ratio

= $3,660,800/40%

= $9,152,000

Data and Calculations:

                                         Regular Model   Deluxe Model           Total

Expected sales quantity             90,000               18,000             108,000

Sales                                    $13,500,000     $12,240,000     $25,740,000

Less: Variable costs               8,100,000         7,344,000        15,444,000

Contribution margin           $5,400,000       $4,896,000     $10,296,000

Less: Direct fixed costs         1,200,000            960,000         2,160,000

Segment margin                $4,200,000       $3,936,000       $8,136,000

Less:Common fixed costs                                                         1,500,800

Operating income                                                                  $6,635,200

Selling price per unit                  $150                   $680 ($12,240,000/18,000)

Variable costs per unit                $90                   $408 ($7,344,000/18,000)

Contribution margin                    $60                   $272 ($680 - $408)

Contribution margin ratio for the company = 40% ($10,296,000/$25,740,000 x 100)

Company total fixed costs = $3,660,800 ($2,160,000 + $1,500,800)

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1. If the Economist offers print and web access separately in the market, what are the optimal prices for home

Answers

subscription and web access

Logic teaches students how to think for themselves. It helps them develop their critical thinking skill. It gives them the ability to analyze and evaluate arguments. I think it should be taught in schools.

Answers

Answer:

what is the question tho?

Explanation:

Which of the following would be the MOST useful strategy for learning to 5 diém communicate effectively with international employees working in your overseas divisions?

Answers

The most useful strategy for learning to communicate effectively with international employees would be to be aware that the employees are influenced by your native culture so awareness of values, beliefs and practices would help to develop product more efficiently.

Given that the final customer base is going to be in both nations it is good to know the values and also learn more about the cultures of others.

This is very crucial to the success of the business. If the language and cultural barriers are overcome the business would be efficient.

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A short-term job or work project that can be paid or unpaid and can lead to a full-time, paying position is called a(n) _____.
a.
job shadow
b.
temp job
c.
internship
d.
cooperative program


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

its called an internship so c

Answer:

The answer is C. internship

Explanation:

A short-term job or work project that can be paid or unpaid and can lead to a full-time, paying position is called an internship.

observant real life story examples

Answers

Answer:

real life story real life stories is a story that mean in real life

Mars Mission Inc. is a regulated publicly held corporation. Under the Securities Act of 1934, Mars is required to a. engage in market surveillance to deter undesirable practices. b. disclose information about its organization and financial situation. c. contribute to the operations of national stock exchanges. d. all of the choices.

Answers

Mars Mission Inc. which us a regulated publicly held corporation, were required to  B: disclose information about its organization and financial situation. Under the Securities Act of 1934.

The Securities Exchange Act of 1934 was set up  to oversee securities transactions that are related to secondary market.

And to ensure greater financial transparency and  accuracy and this is what is expected from Mars Mission Inc which is under this act.

Therefore, option B is correct.

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Benefits of Digital Communication
This activity is important because the Internet has created tremendous opportunities for companies to forge relationships with consumers and business customers, target markets more precisely, and even reach previously inaccessible markets around the world. Digital communication offers a completely new dimension in connecting with others. There are five characteristics that distinguish digital from traditional communication: addressability, interactivity, accessibility, connectivity, and control. This exercise explores the meaning of these characteristics and how they enhance marketing.
The goal of this activity is to demonstrate your understanding of both digital media and digital marketing, as well as demonstrate the role of digital marketing and social networking in today’s business environment. Roll over the items to read the hints. Match the company actions to the correct characteristic.
a. Procter & Gamble
b. Marketers at Apple
c. Benjamin Moore & Co.
d. NASCAR
e. Apple’s website
1. Addressability
2. Interactivity
3. Accessibility
4. Connectivity
5. Control

Answers

Answer:

1.C.Benjamin Moore & Co.

2.A.Procter & Gamble

3.D.NASCAR

4.B.Marketers at Apple

5.E.Apple's website

#carryonlearning

The correctly matched company actions and their characteristic:

Addressability - Benjamin Moore & Co.Interactivity - Procter & GambleAccessibility - NASCARConnectivity - Marketers at AppleControl - Apple’s website

What are the benefits of Digital Communication?

The act of communicating information from one person to another through digital equipment is known as digital communication. A text message or email can be sent, or it might be more complicated like using social media or video conferencing. Communication is more crucial than ever in today's digital environment.

Digital communication has several advantages, including the capacity to interact with individuals from all over the world and the capacity to communicate more effectively and efficiently. Digital communication can present certain difficulties, too, including the possibility of misunderstandings and the requirement for strong cyber security. This is crucial for companies who wish to promote their products or services.

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A(n) __________ is a business-to-business (B2B) network which provides an organization access to suppliers and distributors to improve supply chain management.

Answers

The kind of business-to-business (B2B) network that gives access to organization so that they can have access to a suppliers as well as  distributors for a better supply chain management is private exchange.

A private exchange can be regarded as online resource which could be established by brokers, insurance as well as benefit consultants which allows individuals and employers to locate suppliers and distributors.

This service brings about a improved supply chain management.

Therefore, private exchange is the correct term.

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If GH is an altitude, what would mZGHF have to be? Given:In quadrilateral WXYZ , and bisect each other at point A.Prove: Quadrilateral WXYZ is a parallelogram. StatementReason1. and bisect each other.given2. WA = YA XA = ZAdefinition of bisection3. mYAZ = mXAWVertical Angles Theorem4. SAS criterion for congruence5. YWX WYZCorresponding angles of congruent triangles are congruent.6. || converse of Alternate Interior Angles Theorem7. mXAY = mZAWVertical Angles Theorem8. XAY ZAWSAS criterion for congruence9. XZW ZXYCorresponding angles of congruent triangles are congruent.10. || converse of Alternate Interior Angles Theorem11. Quadrilateral WXYZ is a parallelogram.definition of parallelogram Monique saved money to buy softball equipment. She used 1/4 of her savings to buy a bat. She used 2/3 of her savings to buy a glove. How much of her savings does Monique have left? Her response to my success was totally ________ and took us all by surprise.A. expectedlyB. expectinglyC. unexpectedD. unexpecting. 3(x+2)=5x-7 Work out value of x What is the equation of the line in slop-intercept form?Enter your answer in the blank spotsy= __x + __ 1. Rewrite the sentences with the same meaning You cant smoke in the theatre. there are between 30 and 40 sweets in a bag . ben and daisy share the sweets in the ratio of 4:5. there are no sweets remaining in the bag .how many sweets were in the bag to begin with How does covalent bonding take place?A. A nonmetallic element like Fluorine is attracted to a metallic element likeSodium.B. A metallic element like Sodium transfers an electron to a non-metallic elementlike Fluorine.C. Two or more non-metallic elements share electrons to attain stability.D. Two or more non-metallic elements of the same kind form strong forces ofattraction. Although the Middle East is very rich in oil, it continues to lack adequate water for agricultural production. One way Middle Eastern countries produce fresh water is the process of __________. Group of answer choicesdesertificationsubsistencedeforestationdesalination what is Karma? In your own words, not g00gle's, thanks! :) How do erosions affect land forms?Erosion is the only cause of land form changes.Land forms can be created by erosion.Erosion can prevent land forms from being built.Land forms can only be created through erosions. 1) How was the story of Narcissus used in the novel? What changed? Apple pie is my favorite. I bake a lot of it because i never got my fair share as a kid. Last year I got a little carried away and had 7 1/4 pies left over. I cut the pie into pieces to freeze and save for later. Each piece as 1/8 of a whole pie. How many pieces of pie did I freeze? Mt khi kh hidro b nn n th tch bng 1/2 lc u khi nhit khng i. Nu vn tc trung bnh ca phn t hidro lc u l V th vn tc trung bnh sau khi nn l bao nhiu ? Chapter 1 introduction about How is the effort to find treatments against COV1D-19 changing the way druugs are developed and used? Which decade experienced a comeback for swing and bebop, but also turned toward inclusion of world music? Item 5What molecule that is created during photosynthesis provides energy for cellular processes?ATPchlorophyllglucoseoxygen Why dove need to add movies in our slide? What is the main difference between the direct write-off method and the allowance method?.