According to the Gordon Growth Model,what Is the Value of a Stock

question 27

Multiple Choice

According to the Gordon growth model,what is the value of a stock with a dividend of $2,required return on equity of 8% and expected growth rate of dividends of 4%?

• A) $25
• B) $26
• C) $50
• D) $52

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Definitions:

Behavioral Modification

A treatment approach that applies the principles of behaviorism and operant conditioning to change undesirable behaviors into more desirable ones.

Training Programs

are structured courses or modules designed to enhance skills, knowledge, and competencies in specific areas for personal or professional development.

Nature-nurture Controversy

The ongoing debate over the relative contributions of genetics and environment to human behavior and traits.

Sir Francis Galton

A British polymath best known for his work in the fields of statistics, psychology, and eugenics, and for being a pioneer in the study of human intelligence and variation.