The basic dividend-discount model is a bit of an oversimplification for valuing stocks because it:
A. ignores the value of future dividends.
B. ignores the risk involved in holding stocks.
C. cannot handle stocks that do not pay dividends.
D. ignores expected dividend growth.
Answer: B
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Which of the following statements about the importance of trade to the U.S. economy is false?
A) The U.S. economy is highly dependent on international trade for growth in its gross domestic product. B) Overall, about 20 percent of U.S. manufacturing jobs depend directly or indirectly on exports. C) The United States is the second largest exporter in the world. D) Since 1970, both exports and imports have steadily increased as a fraction of U.S. gross domestic product.
The Shipbreakers of Alang represent a perfect example of how a developing country can apply the principles of the Heckscher-Ohlin model, since
A) shipbreaking is generally considered to be a capital-intensive operation and India, being a large country has much capital. B) shipbreaking is a labor-intensive operation in India, and India has many workers since it is such a large country. C) shipbreaking is a labor-intensive operation in India, and India's availability of capital per worker is less than that of its trade partners. D) shipbreaking is a capital-intensive operation elsewhere in the world, and therefore represents a case of a factor intensity reversal. E) India's climate lends itself to the work involved in shipbreaking.
Which of the following are equilibrium conditions in the simple Keynesian model?
a. Ir = I b. G = T c. S + T = I + G d. Y = C + I + G e. A, c, and d
Steel producers offer to sell steel to U.S. auto producers at a much lower price than in the past. As a result one would expect: a. no change in the supply of automobiles
b. an increase in the demand for automobiles. c. an increase in the supply of automobiles. d. a decrease in the supply of automobiles.