Which of the following statements is CORRECT?
A. If a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
B. The stock valuation model, P0 = D1/(rs? g), can be used to value firms whose dividends are expected to decline at a constant rate, i.e., to grow at a negative rate.
C. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate.
D. The constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time.
E. The constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years.
Answer: B
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A. made in a way that allows the promisor to decide whether or not to perform the promise. B. agreements entered into when someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration. C. agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date. D. generally treated as non-binding on the parties to the agreement because of the fact that doing so appears to be contrary to the general rule on liquidated debts.
Organizational socialization is the collection of feelings and beliefs that managers have about their organization as a whole.
Indicate whether the statement is true or false.
Transitions are words and phrases that ______________ ideas
a. extrapolate b. explain c. clarify d. connect
A limited partner in a limited liability partnership (LLP) is _____.
A. responsible for the general management of the business B. liable for only the amount invested in the partnership C. responsible for negligence, irresponsibility, or similar acts committed by any other partner D. liable to pay tax on the general partner's share of partnership income E. personally liable for the partnership debts