« previous next »

Author Question: The constant growth model is an approach to dividend valuation that assumes that dividends grow at a ... (Read 44 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
on: Jul 10, 2018
The constant growth model is an approach to dividend valuation that assumes that dividends grow at a constant rate indefinitely.
 
  Indicate whether the statement is true or false

Question 2

Little, Inc. paid a 20 percent stock dividend. Prior to the dividend, the stock's price was 50 a share. Immediately after the dividend, the price will
 
  A)
 
  increase to 60.00 a share.
  B)
 
  decrease to 40.00 a share.
  C)
 
  decrease to 41.67 a share.
  D)
 
  do nothing in particular because of the dividend.


frejo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Model for cytoplasmic segregation Model for cytoplasmic segregation
The secular trend in growth as measured in Swedish (a) girls and (b) boys between 1883 and 1968. The secular trend in growth as measured in Swedish (a) girls and (b) boys between 1883 and 1968.
Model of a longitudinal study in which 983 students were surveyed in 1984 and then again in 1985, 19 Model of a longitudinal study in which 983 students were surveyed in 1984 and then again in 1985, 19
Three-dimensional model of DNA. Three-dimensional model of DNA.
Ice cores also preserve a record of ice sheet growth and decay Ice cores also preserve a record of ice sheet growth and decay
Human Population Growth Human Population Growth
Video: Hormonal regulation of pregnancy - week 1

For a complete list of videos, visit our video library