Which One of the Following Statements Is Correct

question 117

Multiple Choice

Which one of the following statements is correct?

• A)The capital gains yield is the annual rate of change in a stock's price.
• B)Preferred stocks have constant growth dividends.
• C)A constant dividend stock cannot be valued using the dividend growth model.
• D)The dividend growth model can be used to compute the current value of any stock.
• E)An increase in the required return will decrease the capital gains yield.

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Definitions:

Concrete Operations

A stage in cognitive development, according to Piaget, where children gain the ability to think logically about concrete events and understand the concept of conservation.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.

Modeling Clay

A pliable material used in arts and crafts, which can be shaped and molded into various forms, often used for creating sculptures.

Conservation

A concept in cognitive development where a child understands that changing the form of a substance or object does not change its amount, overall volume, or mass.