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Author Question: Which of the following statements is correct? (Read 82 times)

caca31

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Which of the following statements is correct?

It is appropriate to use the constant growth model to estimate stock value even if the dividend yield is never expected to become constant. 


If a stock has a required rate of return rs = 14% and if its dividend is expected to grow at a constant rate of 8%, this implies that the stock’s dividend yield is also 8%.


The constant growth model takes into consideration the capital gains investors expect to earn on a stock.


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



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Marked as best answer by caca31 on Aug 7, 2023

delmiss

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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.
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caca31

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Reply 2 on: Aug 7, 2023
Wow, this really help


cdmart10

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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