This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 46 times)

byomi

  • Full Member
  • ***
  • Posts: 130

Question 1

Which of the following is the basis for stock values?

expected dividends


required rate of return


expected sale price 


the firm’s liquidation value



Question 2

Which of the following statements is correct?

The price of a stock is the present value of all expected future dividends, discounted at the sum of the required rate of return and the dividend growth rate.


The stock valuation model, P0 = D1/(rs– g), cannot be used for firms that have expected negative, but constant, growth rates.


A necessary condition for the validity of the constant dividend growth model is that rs should be greater than g. 


The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by byomi on Aug 7, 2023

KobyRhoads

  • Full Member
  • ***
  • Posts: 160
    • https://anestencreams.com
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly

my web blog tattoo numbing cream (www.anestencream.com)



byomi

  • Member
  • Posts: 130
Reply 2 on: Aug 7, 2023
Gracias!


amcvicar

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

For a complete list of videos, visit our video library