The Constant Dividend Growth Model Assumes

question 147

Multiple Choice

The constant dividend growth model assumes:

• A) a constant annual dividend
• B) a constant dividend growth rate for no more than the first 10 years
• C) that the discount rate must be greater than the dividend growth rate
• D) two of above are true assumptions

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Definitions:

Rejection

The act of dismissing, refusing, or not accepting someone or something.

Terrorization

The act of instilling intense fear or terror in others, often used as a method of coercion or control.

Premises

Statements or propositions that provide the grounds or reasons for a conclusion in logical reasoning or arguments.

Existential Import

A term in traditional logic referring to the implication that a statement assumes the existence of the subject it mentions.