Assuming G Will Remain Constant,the Dividend Yield Is a Good

question 30

Multiple Choice

Assuming g will remain constant,the dividend yield is a good measure of the required return on a common stock under which of the following circumstances?

• A) g = 0.
• B) g > 0.
• C) g < 0.
• D) Under no circumstances.
• E) Answers a and b are both correct.

---

Definitions:

Pareto Optimal

Pareto optimal is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Smelted

The process of extracting a metal from its ore by heating and melting, often involving a chemical reduction reaction.

Carload

A shipping term used to indicate the minimum quantity of cargo necessary for goods to be shipped at a carload rate, typically pertaining to rail transport.

Smelted

The process of extracting a metal from its ore by heating and melting.