The Constant Dividend Growth Model

question 83

Multiple Choice

The constant dividend growth model:
I.assumes that dividends increase at a constant rate forever.
II.can be used to compute a share price at any point of time.
III.states that the market price of a share is only affected by the amount of the dividend.
IV.considers capital gains but ignores the dividend yield.

• A)I only.
• B)II only.
• C)III and IV only.
• D)I and II only.
• E)I, II, and III only.

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Definitions:

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Anticompetitive Agreements

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