Using the Constant Growth Dividend Valuation Model and Assuming Dividends

question 92

Multiple Choice

Using the constant growth dividend valuation model and assuming dividends will growth a constant rate forever,the increase in the value of the stock each year should be equal to the

• A)growth rate in dividends,g.
• B)required return on the stock,r_cs.
• C)dividend yield plus the capital gains yield.
• D)dividend yield.

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