Using the constant growth dividend valuation model and assuming dividends will growth a
constant rate forever, the increase in the value of the stock each year should be equal to the
A) dividend yield.
B) required return on the stock, rcs.
C) growth rate in dividends, g.
D) dividend yield plus the capital gains yield.
C
Business
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Forecasting methods that use historical demand to make a forecast are known as
A) qualitative forecasting methods. B) time series forecasting methods. C) causal forecasting methods. D) simulation forecasting methods.
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