Which One of the Following Sets of Dividend Payments Best

question 41

Multiple Choice

Which one of the following sets of dividend payments best meets the definition of two-stage growth as it applies to the two-stage dividend growth model?

• A)no dividends for 5 years, then increasing dividends forever
• B)$1 per share annual dividend for 2 years, then $1.25 annual dividends forever
• C)decreasing dividends for 6 years followed by one final liquidating dividend payment
• D)dividends payments which increase by 2, 3, and 4 percent respectively for 3 years followed by a constant dividend thereafter
• E)dividend payments which increase by 10 percent per year for 5 years followed by dividends which increase by 3 percent annually thereafter

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Definitions:

Identity Statuses

Phases individuals experience in the development of their identity, exploring and making decisions about personal, occupational, and ideological commitments.

Identity Diffusion

A status in identity development in which an individual has not yet undergone an identity crisis or made any commitments to particular values, goals, or beliefs.

Grows Up

The process of maturing or developing in physical, emotional, or intellectual aspects.

Generativity Versus Self-Absorption

A stage in Erik Erikson's theory of psychosocial development where middle-aged adults face the challenge of contributing to society versus becoming self-centered.