Which of the Following Statements Is CORRECT

question 40

Multiple Choice

Which of the following statements is CORRECT?

• A) The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
• B) Two firms with the same expected dividend and growth rate must also have the same stock price.
• C) It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant.
• D) If a stock has a required rate of return rs = 12%, and if its dividend is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
• E) The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate.

---

Definitions:

MUL Instruction

Refers to a command in programming that instructs the processor to perform a multiplication operation.

Bottles Produced

The total count of bottles manufactured in a given period or through a specific process, often used as a key performance indicator in production settings.

MOV Instruction

An instruction used in programming that moves data from one location to another within a device or between devices.

Memory Location

A memory location is a specific address within a computer's memory where data is stored and can be accessed.