Assume That You Are Using the Dividend Growth Model to Value

question 27

Multiple Choice

Assume that you are using the dividend growth model to value shares.If you expect the market rate of return to increase across the board on all equity securities, then you should also expect the:

• A)market values of all shares to increase, all else constant.
• B)market values of all shares to remain constant as the dividend growth will offset the
• C)increase in the market rate.
• D)market values of all shares to decrease, all else constant.
• E)shares that do not pay dividends to decrease in price while the dividend-paying shares
• Maintain a constant price.
• m.dividend growth rates to increase to offset this change.

---

Definitions:

Office E-Mail

An office e-mail refers to electronic mail used within a professional or organizational context for communication among colleagues, with clients, or between businesses.

Information Overload

A state of feeling overwhelmed by the amount of information one receives or has to process.

Respiratory Diseases

Respiratory diseases are medical conditions that affect the lungs and other parts of the respiratory system, impairing a person's ability to breathe effectively.

Marijuana Use

The consumption of cannabis, a plant with psychoactive properties, for recreational or medicinal purposes.