Which of the following is true for a constant growth stock? As the current dividend decreases the
Fantastic news! We've Found the answer you've been seeking!
Question:
Which of the following is true for a constant growth stock?
As the current dividend decreases the intrinsic value increases
As the growth rate increases the intrinsic value increases as long as the required rate of return is greater than the growth rate.
As the current dividend increases the intrinsic value decreases
As the growth rate decreases the intrinsic value increases as long as the required rate of return is greater than the growth rate.
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Posted Date: