Which of the Following Statements Is CORRECT

question 45

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 r_s = 12%,and if its dividend is expected to grow at a constant rate of 5%,then 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.

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The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

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The tangible, architectural layout and design of a building or space which can influence behavior and operations within an organization.

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Working remotely, often from home, using digital technologies to stay connected with the workplace.