Which of the Following Is Not a Component of the Gordon

question 144

Multiple Choice

Which of the following is not a component of the Gordon (or constant dividend growth rate) model for valuing stocks?

• A)next year's expected dividend
• B)a discount rate that reflects the riskiness of the stock
• C)a constant divided growth rate
• D)next year's expected earnings

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Definitions:

Cognitive Psychology

The study of mental processes such as "attention, language use, memory, perception, problem solving, creativity, and thinking."

Mental Processes

Internal cognitive operations that underlie behaviors and perceptions, including thinking, memory, and problem-solving.

Scientific Study

A systematic investigation and analysis of materials and sources in order to establish facts and reach new conclusions.

Functionalist Theory

A perspective in sociology and anthropology that emphasizes the interconnectedness of society by focusing on how its various parts maintain social order.