Which of the Following Is NOT a Problem with the Dividend

question 23

Multiple Choice

Which of the following is NOT a problem with the dividend model approach to estimating the cost of equity?

• A)Some firms do not pay dividends.
• B)Some firms pay dividends but do not follow a policy of constant growth.
• C)Sometimes it is very difficult to estimate a constant dividend growth rate for a firm.
• D)All of the above are problems with the dividend approach to estimating the cost of equity.

---

Definitions:

Unpaid Work

Labor without financial compensation, including household chores, caregiving, and volunteer efforts, often unrecognized in economic analyses.

Poverty

A state where an individual lacks a certain amount of material possessions or money, leading to difficulties in meeting basic life needs.

Adequate Shelter

A living space that is safe, secure, habitable, and meets the basic needs of individuals or families, including protection from the elements and health hazards.

Long-Term Shelter

Housing intended to provide stability and accommodation for extended periods, especially for individuals or families in crisis or transition.