Assuming G Will Remain Constant,the Dividend Yield Is a Good

question 30

Multiple Choice

Assuming g will remain constant,the dividend yield is a good measure of the required return on a common stock under which of the following circumstances?

• A) g = 0.
• B) g > 0.
• C) g < 0.
• D) Under no circumstances.
• E) Answers a and b are both correct.

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