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Author Question: Which of the following statements is correct? (Read 51 times)

byomi

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Question 1

Which of the following is the basis for stock values?

expected dividends


required rate of return


expected sale price 


the firm’s liquidation value



Question 2

Which of the following statements is correct?

The price of a stock is the present value of all expected future dividends, discounted at the sum of the required rate of return and the dividend growth rate.


The stock valuation model, P0 = D1/(rs– g), cannot be used for firms that have expected negative, but constant, growth rates.


A necessary condition for the validity of the constant dividend growth model is that rs should be greater than g. 


The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.



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Marked as best answer by byomi on Aug 7, 2023

KobyRhoads

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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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byomi

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


bulacsom

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Reply 3 on: Yesterday
Excellent

 

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