The Constant Dividend Growth Model

question 32

Multiple Choice

The constant dividend growth model:

• A)is more complex than the differential growth model.
• B)requires the growth period be limited to a set number of years.
• C)is never used because firms rarely attempt to maintain steady dividend growth.
• D)can be used to compute a stock price at any point in time.
• E)most applies to stocks with differential growth rates.

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Definitions:

Environmental Changes

Alterations in the natural or built environment, often due to human activity, climate change, or natural phenomena.

Labour Shortage

A situation in which employers experience difficulty finding employees with the required skills to fill their job vacancies.

Environmental Factors

Various external elements, including economic, social, political, and ecological influences, that can affect an organization’s operation.

HRM

Human Resource Management, the strategic approach to the effective management of people in an organization, focusing on policies and systems.