If the Dividend Growth Model Is Used, the Cost of Equity

question 7

Multiple Choice

If the dividend growth model is used, the cost of equity depends on
​1) the firm's earnings growth rate
2) the current dividend payment
3) the price of the stock

• A)​1 and 2
• B)1 and 3​
• C)2 and 3​
• D)1, 2, and 3​

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Definitions:

Cochlea

A coiled, bony, fluid-filled tube in the inner ear that houses the sensory receptors.

Auditory Nerve

The nerve that transmits auditory information from the cochlea in the inner ear to the brain.

Higher-Frequency Sounds

Sounds that have a higher pitch due to their faster vibration rates, typically above the normal human hearing range of 20 to 20,000 hertz.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is responsible for converting sound waves into nerve impulses.