The Model Used to Value a Stock That Pays a Dividend

question 108

Multiple Choice

The model used to value a stock that pays a dividend which increases at a constant rate forever is referred to as which one of the following? Assume the growth rate is less than the discount rate.

• A)diminishing valuation growth model
• B)increasing valuation growth model
• C)constant perpetual growth model
• D)irregular growth perpetual model
• E)two-stage growth model

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Definitions:

Regional Alliances

Partnerships or collaborations formed between entities within a specific geographic area to pursue common goals.

Management Theories

The study of different concepts and models that describe how to manage an organization’s resources, operations, and employees effectively.

Global Management Attitudes

Perspectives and approaches that managers adopt to handle and direct international organizations and employees.

Management Attitudes

Refers to the beliefs, values, and dispositions that managers hold towards their roles, responsibilities, and towards the people they manage.