What is the relationship between dividends and the forecasted stock price in a binomial model?
What will be an ideal response?
The dividend acts to reduce the forecasted stock price at each node in the binomial model.
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If a manager abruptly fires an employee for a single error and does not use progressive discipline for an under-performing employee, he/she may be making a
A. halo error. B. primacy error. C. horn error. D. recency error.
The cumulative feature of preferred stock means
A) an unpaid dividend in one year accumulates and must be paid in the future before any dividend can be paid on common stock. B) any unused votes accumulate to future periods where they can then be exercised. C) investors choose not to receive a dividend but rather let them accumulate. D) that the stock's issuer must accumulate funds in a sinking account.