One Share Valuation Model Holds That the Value of a Share

question 10

Multiple Choice

One share valuation model holds that the value of a share is a function of its future dividends, and that the dividends will increase at an annual rate which will remain unchanged over time. This share valuation model is known as the

• A) constant- growth dividend valuation model.
• B) dividend reinvestment model.
• C) holding period return model.
• D) approximate yield model.

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Definitions:

Crepitus

A crackling or popping sound or sensation experienced under the skin and joints or in the lungs, often indicating the presence of air in abnormal places or friction between bone and cartilage.

Tactile Fremitus

A clinical examination method involving the vibration of the chest wall that is palpable on physical examination, often indicating the presence of lung disease or consolidation.

Chest Tube

A medical device inserted into the pleural space of the chest to remove air, fluid, or pus, commonly used in cases of pneumothorax or pleural effusion.

Palpable Thyroid Gland

A condition in which the thyroid gland can be felt upon physical examination, possibly indicating an abnormality.