In the Multiple Growth Model the Dividend Growth Rate Is

question 24

Multiple Choice

In the multiple growth model the dividend growth rate is

• A) constant over several time periods.
• B) assumed to be changing over several time periods.
• C) assumed to grow at the same rate but over different time periods.
• D) zero or constant.

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect.

Uncollectible Accounts

Debts owed to a company that are considered to be uncollectible and are thus written off as a bad debt expense.

Allowance Method

An accounting technique used to estimate uncollectable accounts receivable within a company's financial statements.

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from credit sales.