Author Question: In the Gordon model, the value of the common stock is the (Read 120 times)

tiara099 · **on:** Apr 25, 2021

Question 1

In 2001, Ryder Corp. paid a dividend of $2.20. In 1995, Ryder paid a dividend of $1.50. What is Ryder's dividend growth rate?
◦ 47%
◦ 70%
◦ 10%
◦ 8%
◦ 12%

Question 2

In the Gordon model, the value of the common stock is the
◦ Net value of all assets which are liquidated for their exact accounting value.
◦ Actual amount each common stockholder would expect to receive should the firm's assets be liquidated at fair market value.
◦ Present value of a non-growing dividend stream.
◦ Present value of a constant, growing dividend stream.

brittanywood · **Reply #1 on:** Apr 25, 2021

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