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.

---

Definitions:

Health Psychology

A field of psychology focused on understanding how biological, psychological, and social factors influence health and illness.

Psychosomatic Medicine

A branch of medicine dealing with the interaction between psychological processes and physical disorders.

Behavioural Medicine

Application of the methods of behaviour modification to the treatment or prevention of disease—for example, the use of psychological techniques to control pain in patients undergoing medical procedures, or interventions to improve the diabetics’ ability to control their blood glucose.

Psychosocial Variables

Factors that involve both psychological and social aspects affecting an individual's behavior and thoughts.