The appropriate application of the constant growth dividend discount model (DDM) requires an understanding of the fundamental nature of the model and its parameters. It is important that students not only be able to mechanically ''plug and chug'' the formula, but that they also understand the ...
The constant-growth dividend discount model would typically be most appropriate in valuing a stock of a: A. rapidly growing company.B. new venture expected to retain all earnings for several years.C. moderate growth, "mature" company. 正确答案:C 分享到: 答案解析: Remember, the infinite peri...
7. The constant dividend growth model: I. assumes that dividends increase at a constant rate forever. II. can be used to compute a stock price at any point of time. III. states that the market price of a stock is only affected by the amount of the dividend. IV. considers capital ...
correct. The Gordon growth model (also known as the constant growth model) can be used to valuedividend-paying companies in a mature phase of growth. A stable dividend growth rate is often a plausible assumption for such companies. 相关知识点: ...
The constant growth dividend model, also known as the Gordon growth model of stock valuation is one of the most popular stock valuation models despite its significant limitations because of its simplicity. It was designed by economist David Gordon to...
Answer to: What premise about share value underlies the constant-growth valuation (Gordon growth) model that is used to measure the cost of common...
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Assume that you are using the dividend growth model to value stocks. If you expect the market rate of return to increase across the board on all equity securities, then you should also expect the: A.market values of all stocks to increase, all else constant.B.market values of all stocks...
The dividend growth model:A.assumes that dividends increase at a constant rate foreverB.can be used to compute a stock price at any point in timeC.can be used to value zero-growth stocksD.requires the growth rate to be less than the required return的答案
The Yardeni model is best explained as:A. a variation of the constant growth dividend discount model in which earnings are used instead of dividends.B. being able to value the market by applying the model as a ratio with a value greater than 1 indicating the market is overvalued....