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Author Question: The variable-growth dividend valuation model (Read 21 times)

tyratatyanna

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on: Mar 29, 2022

Question 1

The Hopkinton Company just paid $2.25 as its annual dividend. The dividends have been increasing at a rate of 5% annually and this trend is expected to continue. The stock is currently selling for $63.60 a share. What is the rate of return on this stock?
◦ 3.60%
◦ 3.70%
◦ 8.7%
◦ 11.8%

Question 2

The variable-growth dividend valuation model
◦ develops the value of a stock using the future value of dividends minus a rate of capital gain growth.
◦ is valuable because it accounts for the general growth patterns of most companies.
◦ is invalid if at any point in time the growth rate exceeds the required rate of return.
◦ assumes the rate of dividend growth will vary indefinitely.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by tyratatyanna on Mar 29, 2022

DevinBrifm

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tyratatyanna

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review

deja

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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