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

Author Question: Which of the following statements is correct? (Read 25 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
Wow, this really help


chereeb

  • Member
  • Posts: 326
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

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).

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?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

For a complete list of videos, visit our video library