The Dividend Discount Model Assumes That

question 115

Multiple Choice

The dividend discount model assumes that:

• A)the dividend payout ratio will remain constant.
• B)the dividend growth rate is equal to the discount rate.
• C)the discount rate increases at a constant rate.
• D)at least one dividend will be paid in the future.
• E)the dividend payout ratio increases at a constant rate.

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Definitions:

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A theory in psychology that explains human personality and behavior through systems controlling responses to reward and punishment.

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Projective Measure

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Self-report Measure

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