Author Question: ________ means that the percentage increase in the dividend is the same each year. A) Constant ... (Read 107 times)

karlynnae · **on:** Jul 10, 2018

________ means that the percentage increase in the dividend is the same each year.

A) Constant growth
B) Inconsistent growth
C) No growth
D) A constant cash flow

Question 2

The constant growth dividend model requires that ________.

A) the return rate r is greater than the growth rate g of the dividend stream
B) the return rate g is greater than the growth rate r of the dividend stream
C) the return rate r is lesser than the growth rate g of the dividend stream
D) we set g = 0 if the return rate r is greater than the growth rate g of the dividend stream