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Author Question: The Gordon model is based on the premise that the value of a share of stock is equal to sum of all ... (Read 79 times)

evelyn o bentley

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on: Jul 11, 2018
The Gordon model is based on the premise that the value of a share of stock is equal to sum of all future dividends it is expected to provide over an infinite time horizon.
 
  Indicate whether the statement is true or false

Question 2

Using the Capital Asset Pricing Model (CAPM), the cost of common stock equity is the return required by investors as compensation for a firm's nondiversifiable risk.
 
  Indicate whether the statement is true or false


joewallace

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Reply #1 on: Jul 11, 2018
Answer to Question 1

FALSE

Answer to Question 2

TRUE


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