the constant growth dividend model requires which of the following conditions? a) G < r b)...
the constant growth dividend model requires which of the following conditions?
a) G < r
b) R > G
c) g is lower than, or equal to, the growth rate of economy
d) A and C
e) all the above
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the constant growth dividend model requires which of the
following conditions?
a) G < r
b)...
Which of the following is not correct regarding the constant growth dividend discount model? Group of...
Which of the following is not correct regarding the constant growth dividend discount model? Group of answer choices The model is based on the dividend one year from the valuation period. The model requires that the required return be greater than or equal to the growth rate of the dividend. The model can be rearranged to determine the payout ratio. All of the above are true.
7. Which of the following is an assumption of the dividend growth model? a. The current...
7. Which of the following is an assumption of the dividend growth model? a. The current dividend divided by 1+g equals the next dividend. b. G must be greater than R. c. The stock must pay dividends. d. Both price and dividend will grow at Rindefinitely e. The price and dividend will increase gradually over the years. 8. A stock with a dividend yield of 5% and a total yield of 11% a. Must be growing at 4%. b. Must...
1. According to the constant dividend growth model, which of the following is true A. the...
1. According to the constant dividend growth model, which of the following is true A. the dividend yield is the same as the capital gains yield. B. the constant growth rate is the same as the dividend yield. C. the capital gains yields is the same as the constant dividend growth rate. D. The price growth rate is the same as the dividend yield. 2. Which of the following is true about stock returns? A. the dividend yield must always...
7. Which of the following is an assumption of the dividend growth model? a. The current...
7. Which of the following is an assumption of the dividend growth model? a. The current dividend divided by 1+g equals the next dividend. b. G must be greater than R. c. The stock must pay dividends. d. Both price and dividend will grow at Rindefinitely e. The price and dividend will increase gradually over the years. 8. A stock with a dividend yield of 5% and a total yield of 11% a. Must be growing at 4%. b. Must...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1....
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For the constant growth rate dividend model to work, which of the following assumptions must hold?...
For the constant growth rate dividend model to work, which of the following assumptions must hold? The growth rate must be less than the required rate of return. The growth rate must be greater than the required rate of return. The growth rate should always be equal to zero. The growth rate must be equal to the required rate of return.
The dividend growth model equates a stock’s intrinsic value (theoretical price) to the discounted sum of...
The dividend growth model equates a stock’s intrinsic value (theoretical price) to the discounted sum of the constant growth dividend stream. The relationship between the dividend growth rate (g) and the discount rate (r) is very important. Which statement accurately describes that relationship? Select one: a. I When g equals zero percent then the stocks intrinsic value is equal to div/r. b. II When g exceeds r then the stock’s intrinsic value is negative, meaning the stock is worthless c....
Which of the following statements is true? From a practical perspective, the growth rate in the...
Which of the following statements is true? From a practical perspective, the growth rate in the constant growth dividend model must be greater than the sum of the long-term rate of inflation and the long-term real growth rate of the economy. In order for the constant growth dividend model to properly value a firm’s common stock, g must be greater than R. The constant growth dividend model can be used effectively to value the common shares of a mixed growth...
Which of the following is not a component of the Gordon (or constant dividend growth rate)...
Which of the following is not a component of the Gordon (or
constant dividend growth rate) model for valuing stocks?
next year’s expected dividend
a constant dividend growth rate
next year’s expected earnings
a discount rate that reflects the riskiness of the stock
In accordance with the dividend growth model, an increase in the following except will raise 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...
7. Which of the following is an assumption of the dividend growth model? a. The current dividend divided by 1+g equals the next dividend. b. G must be greater than R. c. The stock must pay dividends. d. Both price and dividend will grow at Rindefinitely e. The price and dividend will increase gradually over the years. 8. A stock with a dividend yield of 5% and a total yield of 11% a. Must be growing at 4%. b. Must...
1. According to the constant dividend growth model, which of the following is true A. the dividend yield is the same as the capital gains yield. B. the constant growth rate is the same as the dividend yield. C. the capital gains yields is the same as the constant dividend growth rate. D. The price growth rate is the same as the dividend yield. 2. Which of the following is true about stock returns? A. the dividend yield must always...
7. Which of the following is an assumption of the dividend growth model? a. The current dividend divided by 1+g equals the next dividend. b. G must be greater than R. c. The stock must pay dividends. d. Both price and dividend will grow at Rindefinitely e. The price and dividend will increase gradually over the years. 8. A stock with a dividend yield of 5% and a total yield of 11% a. Must be growing at 4%. b. Must...
6) Which of the following statements concerning the constant-growth dividend valuation model is (ar) correct 1. One simple method of estimating the dividend growth rate is to analyze the historical paltem of dividends II. The expected total return equals the return from capital gains plus the return from dividends TIL. The model is applicable to growth firms with initially high growth rates. IV. The intrinsic value calculated using this method can change from one investor to another if their risk-return...
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constant dividend growth rate) model for valuing stocks?
next year’s expected dividend
a constant dividend growth rate
next year’s expected earnings
a discount rate that reflects the riskiness of the stock
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