When using the Dividend Discount Model, assuming that growth (g) will remain constant, under which of the following circumstances will the dividend yield be equal to the required return on a common stock (rs)??

A. ?g = 0
B. ?g > 0
C. ?g < 0
D. ?g = rs
E. ?g > rs


Answer: A

Business

You might also like to view...

Most homeowners do not have to pay a capital gains tax on the appreciation in the value of the home

Indicate whether the statement is true or false.

Business

The terms slack and surplus both refer to having too much of a resource

Indicate whether the statement is true or false

Business

HTML is used

(a) to render Web pages. (b) to incorporate programs into a document. (c) to specify where a document is located on disk. (d) to specify the structure of a document.

Business

Silvio is a member of the student ethics committee. In meetings, he sometimes appears to be paying attention, but at other times does not appear to be tracking the conversations. He rarely contributes to the discussions. He is exhibiting the ________ style of listening.

A. detached B. involved C. active D. motivated E. passive

Business