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Author Question: The dividend models appeal to a fundamental concept of asset pricingthat the value of an asset is ... (Read 29 times)

rosent76

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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.


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elizabethrperez

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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

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Reply #2 on: Jul 10, 2018
Thank you


elizabethrperez

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Reply #3 on: Jul 10, 2018
No problemo


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