Using the Gordon Growth Model,a Stock's Price Will Increase If

question 59

Multiple Choice

Using the Gordon growth model,a stock's price will increase if

• A) the dividend growth rate increases.
• B) the growth rate of dividends falls.
• C) the required rate of return on equity rises.
• D) the expected sales price rises.

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Definitions:

Transactions

Business activities or events that involve the exchange of goods, services, money, or a promise of any of these.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Amount entered on the right side of an account.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.