Using the Constant Dividend Growth Model for Common Stock, If

question 133

Multiple Choice

Using the constant dividend growth model for common stock, if P_o goes up

• A) the assumed cost goes up.
• B) the assumed cost goes down.
• C) the assumed cost remains unchanged.
• D) need further information

---

Definitions:

Sample Mean

Mean calculated from data for a sample.

Confidence Interval

A set of values, taken from sampled data, that potentially covers the value of an unknown parameter of the population.

Mean Score

The average value calculated by adding all individual scores and dividing by the number of scores.

Confidence Interval

A collection of values, extracted from sample measurements, likely to harbour the value of an undetected population parameter.