Which of the following statements concerning the constant growth dividend valuation model is

true?

A) The required rate of return must be equal to the growth rate for dividends.
B) The required rate of return must exceed the growth rate.
C) The growth rate must increase every year.
D) The dividend growth rate must be bigger than 8%.


B

Business

You might also like to view...

Groupthink refers to the tendency of members in highly cohesive groups to lose their critical evaluative capabilities resulting in quick decision making with little consideration of alternatives.

Answer the following statement true (T) or false (F)

Business

Poor credit could become a ____ that could lead to fraud

a. Financial pressure b. Social pressure c. Family pressure d. Financial threat

Business

In IFRS, preferred stock subject to mandatory redemption is disclosed

a. between liabilities and shareholders' equity. b. as a liability. c. as a shareholders' equity. d. as a revenue. e. as an expense.

Business

A creative work or invention that is protectable by patents, trademarks, trade names, copyrights, and trade secrets is known as __________.

What will be an ideal response?

Business