The Variable-Growth Dividend Valuation Model

question 52

Multiple Choice

The variable-growth dividend valuation model

• A) develops the value of a stock using the future value of dividends minus a rate of capital gain growth.
• B) is valuable because it accounts for the general growth patterns of most companies.
• C) is invalid if at any point in time the growth rate exceeds the required rate of return.
• D) assumes the rate of dividend growth will vary indefinitely.

---

Definitions:

Parasitic Infection

An infestation by parasites such as protozoa, worms, or insects that live on or inside a host organism, often causing disease.

O&P Specimen

An ova and parasites specimen, or a stool sample, that is examined for the presence of certain forms of protozoans or parasites, including their eggs (ova).

Dehydrated

A state of body water loss that exceeds water intake, leading to symptoms such as thirst, dizziness, and dry skin.

Shock

A critical condition brought on by a sudden drop in blood flow through the body, leading to organ failure and, if untreated, death.