When Using the Dividend Discount Model, Assuming That Growth (G)

question 47

Multiple Choice

When using the Dividend Discount Model, assuming that growth (g) will remain constant, under which of the following circumstances will the dividend yield be equal to the required return on a common stock (rs) ?

• A) g = 0
• B) g > 0
• C) g < 0
• D) g = rs
• E) g > rs

---

Definitions:

Dispenser

A device designed to release a specific amount of material, such as soap, towels, or beverages, often for efficiency and convenience in various settings.

Functional

Refers to products or services designed to fulfill specific purposes or tasks.

Aesthetic Design

Involves enhancing the appearance and emotional appeal of a product or interface to improve user experience.

Brand Personality

The set of human characteristics attributed to a brand, shaping consumer perceptions and fostering emotional connections with the brand.