Business
Business, 06.07.2019 01:10, tracyaleblanc

Which of the following statements will always hold true? the constant growth valuation formula is not appropriate to use for zero growth stocks. the constant growth valuation formula is not appropriate to use unless the company’s growth rate is expected to remain constant in the future. it will never be appropriate for a rapidly growing start-up company that pays no dividends at present, but is expected to pay dividends at some point in the future, to use the constant growth valuation formula.

answer
Answers: 3
Show answers

Similar questions

Предмет
Business, 06.10.2019 01:30, Unknowndragon42
5. expected returns, dividends, and growth the constant growth valuation formula has dividends in the numerator. dividends are divided by the difference between the required return and dividend growth rate as follows: pˆ0 = d1(rs − gl) which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield? the capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price. the capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. walter utilities is a dividend-paying company and is expected to pay an annual dividend of $1.05 at the end of the year. its dividend is expected to grow at a constant rate of 6.00% per year. if walter’s stock currently trades for $25.00 per share, what is the expected rate of return? 6.04% 6.60% 6.29% 10.20% which of the following statements will always hold true? the constant growth valuation formula is not appropriate to use unless the company’s growth rate is expected to remain constant in the future. the constant growth valuation formula is not appropriate to use for zero growth stocks. it will never be appropriate for a rapidly growing startup company that pays no dividends at present—but is expected to pay dividends at some point in the future—to use the constant growth valuation formula.
Answers: 2
continue
Предмет
Business, 06.10.2019 07:01, kevonmajor
Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results? the company’s stock cannot be a zero growth stock. the company’s growth rate needs to change as the company matures. the required rate of return, r s , must be greater than the long-run growth rate.
Answers: 1
continue
Предмет
Business, 31.10.2019 02:31, chammusa2
Which of the following statements concerning the constant growth dividend valuation model is true? select one: a. the growth rate must increase every year. b. the required rate of return must exceed the growth rate. c. the required rate of return must be equal to the growth rate for dividends. d. the dividend growth rate must be bigger than 8%.
Answers: 1
continue
Предмет
Business, 31.10.2019 04:31, nay191
Which of the following statements will always hold true? - it will never be appropriate for a rapidly growing start-up company that pays no dividends at present, but is expected to pay dividends at some point in the future, to use the constant growth valuation formula. - the constant growth valuation formula is not appropriate to use unless the company’s growth rate is expected to remain constant in the future. - the constant growth valuation formula is not appropriate to use for zero growth stocks.
Answers: 2
continue
Do you know the correct answer?
Which of the following statements will always hold true? the constant growth valuation formula is n...

Questions in other subjects:

Konu
Mathematics, 20.09.2019 17:30
Lysera enjoys exploring her land on horseback with its lush green valleys and ancient forests. she can cover a great deal of ground on her horse, princess grey dawn, traveling at 9...
Konu
Physics, 20.09.2019 17:30
Calculated the measurement uncertainty for kinetic energy when : mass = 1.3[kg] +/- 0.4[kg]velocity= 5.2 [m/s] +/- 0.2 [m/s]ke= 18 [j] +/- (m/s2 )m]measurement uncertainty [measure...
Konu
Physics, 20.09.2019 17:30
Which of the following statements is/are true? check all that apply. check all that apply. the work done by a nonconservative force depends on the path taken. a nonconservative fo...
Konu
Mathematics, 20.09.2019 17:30
Aresident in a particular city pays a water bil of $4 44 per montth plus $0.50 per 1000 galons of water used (up to 4000 galions) if this cty has 449,000 customers that use less th...
Konu
Physics, 20.09.2019 17:30
If we want to find the size of the force necessary to just barely overcome static friction (in which case fs=μsn), we use the condition that the sum of the forces in both direction...
Konu
Mathematics, 20.09.2019 17:30
(06.02) the table below shows data from a survey about the amount of time students spend doing homework each week. the students were either in college or in high school: high low...
Konu
History, 20.09.2019 17:30
What is the central reason why mckinley won th 1896 election?...
Konu
Mathematics, 20.09.2019 17:30
Alake with constant volume 10 x100 m is fed by the pollution-free stream with flow rate 70 m/s. a factory dumps 8 m/s of a nonconservative waste with concentration 120 mg/l into th...
Konu
Business, 20.09.2019 17:30
Cali has been told that starting her own dog-walking business is a way to earn extra money after school. she would like to supplement her allowance so she decides to open dog trott...
Konu
Biology, 20.09.2019 17:30
Why are tortoiseshell cats female? why are tortoiseshell cats female?...
Other tasks in the category: Business More task
See results (0)