Which of the following statements concerning the constant growth dividend valuation model is
true?
A) The required rate of return must be equal to the growth rate for dividends.
B) The required rate of return must exceed the growth rate.
C) The growth rate must increase every year.
D) The dividend growth rate must be bigger than 8%.
B
Business
You might also like to view...
If the break-even volume doubles, this suggests that
A) variable cost has increased. B) fixed cost has increased. C) selling price has decreased. D) Any of the above E) None of the above
Business
You invest $15,000 today, compounded monthly, with an annual interest rate of 8.25%. What amount of interest will you earn in one year?
A) $1,285.38 B) $1,295.38 C) $1,298.98 D) $1,723.23
Business