Author Question: The expected rate of return on a share of common stock whose dividends are growing at a constant ... (Read 79 times)

rmenurse

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The expected rate of return on a share of common stock whose dividends are growing at a constant
  rate (g) is which of the following, where D1 is the next dividend and Vc is the current value of the
  stock?
 
  A) D1/g B) D1/g + Vc C) (D1 + g)/Vc D) D1/Vc + g

Question 2

When considering taxes, most investors prefer capital gains over dividend income.
 
  Indicate whether the statement is true or false


ririgirl15

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Answer to Question 1

D

Answer to Question 2

TRUE



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