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Author Question: Dividend models suggest that the value of a financial asset is determined by the ________ the owner ... (Read 21 times)

cherise1989

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on: Jul 10, 2018
Dividend models suggest that the value of a financial asset is determined by the ________ the owner is entitled to while holding the asset.
 
  A) present cash flows
  B) past cash flows
  C) future cash flows
  D) past and present cash flows

Question 2

An increase in a firm's market risk should be reflected in what part(s) of the Gordon growth model?
 
  A) The dividend growth rate
  B) The required return
  C) Next year's dividend


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epscape

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) Dividend models do not focus on past and present cash flows but future cash flows, which are discounted by a required rate of return.

Answer to Question 2

B


cherise1989

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

jordangronback

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Reply 3 on: Yesterday
Gracias!

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