Multiple Choice
The constant dividend growth formula P0 = Div1/(r - g) assumes:
I. the dividends are growing at a constant rate g forever.
II. r > g
III. g is never negative.
A) I only
B) II only
C) I and II only
D) III only
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q26: The dividend yield reported as Yld. %
Q27: Discuss the general principle in the valuation
Q29: In which of the following stock exchange
Q32: It is not possible to value a
Q34: A company forecasts growth of 6% for
Q35: Will Co. is expected to pay a
Q36: The only payoff to the owners of
Q39: Briefly explain the term market capitalization rate.
Q57: Briefly explain how the formulas that are
Q61: All securities in an equivalent risk class