Using the Gordon Growth Model,a Stock's Current Price Will Increase

question 35

Multiple Choice

Using the Gordon growth model,a stock's current price will increase if

• A)the dividend growth rate increases.
• B)the growth rate of dividends falls.
• C)the required rate of return on equity rises.
• D)the expected sales price rises.

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Definitions:

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The total amount of taxes owed by an individual, corporation, or other entity to taxing authorities, such as the federal or state government, based on income, property value, or other taxable assets.

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The annual document submitted to a tax authority that reports income, expenses, and other relevant tax information, used to determine tax liability.

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