The discounted dividends valuation model of common stock assumes that dividends will grow at a constant rate forever. This method tells us that the (dividend next year) divided by the (required rate of return - growth rate) yields the
A) discounted dividend.
B) dividend growth rate.
C) value of the common stock.
D) value of the earnings.
E) value of the P/E ratio.
Answer: C
You might also like to view...
In which of the following areas is proper etiquette is less essential?
A) The expectation that employees will not be late as they have access to directions B) The creation of distraction and annoyance for others C) The expectation that dictated information will be accurate when transferred to text D) The expectation that receivers will be able to respond immediately to any inquiry E) The assumption that everyone else has access to the same technology
The ____________ or ____________ includes both the ____________ and ____________ of a service facility
a. roll; retrieval; implicit aspects; explicit aspects b. stage; servicescape; exterior; interior c. stage; service area; customers; employees d. roll; canopy; employees; equipment e. roll; service area; front-stage; backstage