According to the Gordon-Growth Model, What Will Be the Percentage

question 51

Multiple Choice

According to the Gordon-Growth model, what will be the percentage change in the value of the stock of a company whose current dividend is $10.00 and whose dividends had been expected to grow by 3% per year but now are expected to grow by 1% per year?

• A)-4.0%
• B)-23.7%
• C)-31.1%
• D)-66.0%

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, and organization.

Big Five Trait

A model that outlines five broad dimensions of human personality traits, including openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Volunteering

The act of offering services willingly without the expectation of payment.

Agreeableness

A personality trait characterized by warmth, friendliness, and a cooperative disposition.