One of the Assumptions of the Constant Growth Dividend Valuation

question 50

Multiple Choice

One of the assumptions of the constant growth dividend valuation model is that the _____.

• A) investor's required rate of return is equal to the expected dividend yield
• B) required rate of return is greater than the dividend growth rate
• C) required rate of return increases at a constant rate
• D) dividend rate (in dollars) will remain constant