The Constant-Growth Valuation Model Is Based on the Premise That

question 50

Multiple Choice

The constant-growth valuation model is based on the premise that the value of a share of common stock is ________.

• A) the sum of the dividends and expected capital appreciation
• B) determined based on an industry standard P/E multiple
• C) determined by using a measure of relative risk called correlation coefficient
• D) equal to the present value of all expected future dividends

---

Definitions:

Biologists

Scientists who specialize in biology, the study of living organisms and their interactions with each other and their environments.

Offspring

The product of reproduction, a new organism produced by one or more parents.

Gender Identity

A person's personal sense of their own gender, which may or may not correspond with the sex they were assigned at birth.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.