Which One of the Following Statements Is Correct

question 117

Multiple Choice

Which one of the following statements is correct?

• A)The capital gains yield is the annual rate of change in a stock's price.
• B)Preferred stocks have constant growth dividends.
• C)A constant dividend stock cannot be valued using the dividend growth model.
• D)The dividend growth model can be used to compute the current value of any stock.
• E)An increase in the required return will decrease the capital gains yield.

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Definitions:

Award

A recognition or prize given for achievement, or in legal contexts, the resolution and determination provided by an arbitrator or judge.

Plaintiff

The person or party who initiates a lawsuit against another in a court of law.

Defendant

A person, business, or organization being charged or sued in a legal court.

Monetary Compensation

Monetary compensation is financial payment received by an individual or group for services rendered, losses incurred, or as a reward for performance.