According to the Gordon-Growth model, if the stock price is $21, required return on equity is 10% and the current dividend is $1, what is the expected growth rate of dividends?
A) 2%
B) 5%
C) 10%
D) 15%
B
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Intermediate goods and services are one of the largest components of the expenditure approach to measuring GDP
Indicate whether the statement is true or false
Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then
a. the profits of her firm might increase. b. she will face a shortage of labor. c. the turnover of her workers may increase. d. None of the above is correct.
Which of the following transactions would be included in service imports in the U.S. balance of payments?
a. A Chinese exporter sells toys to a toy retailer in the United States. b. An American firm pays a Danish shipping company to transport products to Europe. c. A European purchases a bond from the U.S. Treasury Department. d. A U.S. resident buys a plane ticket from American Airlines for future travel to Mexico.
A useful rule of thumb is that standard errors are expected to shrink at a rate that is the inverse of the:
A. square root of the sample size. B. product of the sample size and the number of parameters in the model. C. square of the sample size. D. sum of the sample size and the number of parameters in the model.