In the Constant-Growth Dividend Valuation Model,the Required Rate of Return

question 32

Multiple Choice

In the constant-growth dividend valuation model,the required rate of return on common stock (i.e.,cost of equity capital) can be shown to be equal to the sum of the dividend yield plus the ____.

• A) yield-to-maturity
• B) present value yield
• C) risk-free rate
• D) dividend growth rate
• E) none of the above

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Definitions:

Self-discrepancies

Refers to the differences between an individual's actual self-concept and their ideal or ought self, which can affect mental health and motivation.

Introspection

The study or scrutiny of one's own psychological and emotional states.

Actual Self

Represents an individual's perception of themselves as they are, rather than how they wish to be.

Overjustification Effect

In the absence of obvious external determinants of our behaviour, we assume that we freely choose the behaviour because we enjoy it.