« previous next »

Author Question: The constant growth model is an approach to dividend valuation that assumes that dividends grow at a ... (Read 112 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
on: Jul 10, 2018
The constant growth model is an approach to dividend valuation that assumes that dividends grow at a constant rate indefinitely.
 
  Indicate whether the statement is true or false

Question 2

Little, Inc. paid a 20 percent stock dividend. Prior to the dividend, the stock's price was 50 a share. Immediately after the dividend, the price will
 
  A)
 
  increase to 60.00 a share.
  B)
 
  decrease to 40.00 a share.
  C)
 
  decrease to 41.67 a share.
  D)
 
  do nothing in particular because of the dividend.


frejo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Female Reproductive Anatomy Model Female Reproductive Anatomy Model
Yuji Hiratsuka, Miracle Grow Hypnotist. Yuji Hiratsuka, Miracle Grow Hypnotist.
The growth of GHG emissions is greatest in the rapidly growing economies of India and China The growth of GHG emissions is greatest in the rapidly growing economies of India and China
Breakdown of the Malthusian Model in Western Europe Breakdown of the Malthusian Model in Western Europe
For a particular process that is carried out at constant pressure, q = 145 kJ and w = -35 kJ. ... For a particular process that is carried out at constant pressure, q = 145 kJ and w = -35 kJ. ...
Primary growth in a shoot Primary growth in a shoot
Video: Second Messengers in the Inositol-lipid Signaling Pathway

For a complete list of videos, visit our video library