Which of the Statements Below Is FALSE

question 73

Multiple Choice

Which of the statements below is FALSE?

• A)In estimating the current price using the constant growth dividend model,we let g be the growth rate of the dividend stream and r be the rate of return required by the potential buyer of the stock.
• B)Constant growth means that the percentage increase in the dividend is the same each year.
• C)Div0 refers to the dividends that have just been paid to the current owner of the stock.
• D)One unlikely dividend pattern is to raise or grow dividends by a fixed amount at fixed intervals.

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