The Constant Dividend Growth Model Assumes

question 147

Multiple Choice

The constant dividend growth model assumes:

• A) a constant annual dividend
• B) a constant dividend growth rate for no more than the first 10 years
• C) that the discount rate must be greater than the dividend growth rate
• D) two of above are true assumptions

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Definitions:

Genus

A classification in biological taxonomy that ranks above species and below family, grouping species that share common characteristics.

Concept

A general idea or understanding that is formulated in the mind.

Species

In biological classification, it refers to the basic unit of classification, defined as groups of organisms capable of interbreeding and producing fertile offspring.

College Course

A unit of teaching that typically covers a specific subject area in a higher education institution, often forming part of a larger program of study.