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__________ Theory Assumes That as We Receive Benefits from Others

question 46

Short Answer

__________ theory assumes that as we receive benefits from others, we are under an obligation to reciprocate by offering benefits in return.


Definitions:

Dividend Growth Model

A model that determines the current price of a stock as its dividend next period, divided by the discount rate, less the dividend growth rate.

Cost of Equity

The theoretical compensation a company provides to its shareholders for the risk they assume by investing their funds.

Beta

A measure of the volatility of a stock or portfolio compared to the volatility of the overall market.

Dividend Growth Model

A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.

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