This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The dividend models appeal to a fundamental concept of asset pricingthat the value of an asset is ... (Read 86 times)

rosent76

  • Hero Member
  • *****
  • Posts: 516
on: Jul 10, 2018
The dividend models appeal to a fundamental concept of asset pricingthat the value of an asset is determined by the future cash flow to which the owner is entitled while holding the asset, and the required rate of return for the cash flow.
 
  Indicate whether the statement is true or false.

Question 2

The dividend growth model has a limitation due to the necessity to have a non-growing dividend pattern in order for it to work.
 
  Indicate whether the statement is true or false.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: FALSE
Explanation: The dividend growth model has a limitation due to the necessity to have a GROWING dividend pattern in order for it to work.


rosent76

  • Hero Member
  • *****
  • Posts: 516
Reply #2 on: Jul 10, 2018
Thank you


elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #3 on: Jul 10, 2018
No problemo


« previous next »
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Some organisms used as models in genetic research Some organisms used as models in genetic research
Concept of Health by Children Concept of Health by Children
Developmentally appropriate food models Developmentally appropriate food models
How Cities Develop: Models of Urban Growth How Cities Develop: Models of Urban Growth
Kyo and jitsu-concept of energy deficiency and excess from shiatsu. Kyo and jitsu-concept of energy deficiency and excess from shiatsu.
Two Models for the Origin of H. sapiens Two Models for the Origin of H. sapiens
Video: Coaductile pathway, Timing of contraction signal & Conduction system and ECG

For a complete list of videos, visit our video library