An increase in which
of the following will increase the current value of a share
according to the dividend growth model?
I. dividend amount;
II. discount rate;
IIII. dividend growth rate
An increase in which of the following will increase the current value of a share according...
a decrease IN what will increase the current value of a stock according to the dividend growth model
Which of the following would cause the price of equity to decrease according to the dividend discount model? a. none of the other choices are correct b. an increase in the discount rate c. an increase in expected future dividends d. an increase in the growth rate of expected future dividends
The dividend growth model: I. cannot be used to value zero-growth stocks. II. cannot be used to compute a stock price at any point in time. III. requires the required return to be higher than the growth rate. IV. assumes that dividends increase by a constant amount forever. V. none of the above is correct Multiple Choice 0 II, and IV only 0 V only 0 1, I, II, and IV only 0 Ill only 0 In order to estimate...
Company A will pay a dividend of €1.30 per share today. The dividend per share is expected to be €1.365 next year. The rate of return required by equity investors is 14.78% and the value of the stock today is estimated at €13.96 according to the Dividend Discount Model in stable growth. What is the long-term rate of growth of dividends implied in this valuation?
Which of the following would theoretically increase the intrinsic value of a company's stock price if you are valuing it using the dividend discount model? Higher interest rates b. Higher growth Higher Beta d Higher market risk premium
The dividend growth model tells us that for a stock, if there is an increase in its ___________________, it will result in a dcrease in the current value of the stock. number of future dividends, provided the total number of dividends is less than infinite dividend growth rate both the discount rate and the dividend growth rate dividend amount discount rate As Dell is currently producing its products at its full capacity, it cannot produce and sell more without adding...
SCI just paid a dividend (Do) of $2.88 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.00% per year. If the required return (rs) on SCI's stock is 15.00%, then the intrinsic value of scis shares is per share. Which of the following statements is true about the constant growth model? O When using a constant growth model to analyze a stock, if an increase in the growth rate occurs while the...
In accordance with the dividend growth model, an increase in the following except will raise the current value of a stock. 1. dividend amount II. investor's required return III. dividend growth rate Multiple Choice 0 I and Il only 0 O and Ill only 0 I only 0 Ill and III 0 ll only Which of the following is/are true for the average accounting return method of project analysis? 1. does not need a cutoff rate II. ignores time value...
Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (rss) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is per share. Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase in the required rate of...
5. Constant growth stocks Aa Aa SCI just paid a dividend (Do) of $1.44 per share, and its 3.00% per year. If the required return (r.) on SCI's stock is 7.50%, then the intrinsic value of SCI's shares is annual dividend is expected to grow at a constant rate (g) of per share. Which of the following statements is true about the constant growth model? O When using a constant growth model to analyze a stock, if an increase in...