Assume You Are Using the Total Payout Method for Determining

question 35

Multiple Choice

Assume you are using the total payout method for determining the price of a share of stock.When computing the total present value,the total payout is divided by the:

• A)required rate of return minus the dividend growth rate.
• B)average investor's required rate of return.
• C)dividend growth rate.
• D)sum of the dividend growth rate and the net income growth rate.
• E)required rate of return minus the net income rate of growth.

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