Which of the Following Are the Three Simplifying Assumptions That

question 17

Multiple Choice

Which of the following are the three simplifying assumptions that cover most stock growth patterns?

• A) Dividends remain constant over time, dividends grow at a constant rate, and dividends are equal to zero.
• B) Dividends have a zero-growth rate, dividends grow at a varying rate, and dividends are equal to zero.
• C) Dividends remain constant over time, dividends grow at a constant rate, and dividends have a mixed growth pattern.
• D) None of the above.