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

Author Question: Which of the following statements is correct? (Read 47 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
YES! Correct, THANKS for helping me on my review


nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

For a complete list of videos, visit our video library