The Dividend Growth Model

question 15

Multiple Choice

The dividend growth model:

• A)is only as reliable as the estimated rate of growth.
• B)can only be used if historical dividend information is available.
• C)considers the risk that future dividends may vary from their estimated values.
• D)applies only when a firm is currently paying dividends.
• E)uses beta to measure the systematic risk of a firm.

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Definitions:

Type Of Tactics

Various strategies or methods employed to achieve a particular objective or to tackle situations.

Irrationality

The act of behaving or making decisions that lack reason or logical thinking.

Fanaticism

Extreme zeal or enthusiasm, often to the point of irrationality, in support of a cause or belief.

USA PATRIOT Act

Legislation passed in response to the September 11, 2001, terrorist attacks aiming to strengthen U.S. counterterrorism efforts by enhancing law enforcement investigatory tools.