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

question 18

Multiple Choice

According to the Gordon-Growth model, what is the value of a stock with a dividend of $1, required return on equity of 10% and expected growth rate of dividends of 5%?

• A)$2
• B)$10
• C)$20
• D)$21

Grasp the concepts of sustainability and sustainable consumer behavior.

Learn the mechanisms and benefits of eco-efficient practices.

Comprehend the importance of stakeholder engagement in evaluating CSR programs.

Recognize the importance of ethical standards and moral responsibilities in business practices.

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Definitions:

Electronic Communication

The transmission of information using electronic systems or devices, including emails, instant messaging, and social media platforms.

Traditional Mail

A method of communication where physical items (such as letters and packages) are delivered through a postal system.

Minerals

Naturally occurring inorganic substances with a definite chemical composition and physical properties.

Real Estate

Property consisting of land or buildings, and anything affixed to the land, which can include residential, commercial, and agricultural properties.