Question: ent: HW - Ch 9 Assignment Score: 0 Save Submit Assignment for Gradi MC.09.033 Question 10 of 16 Check My Work Which of the following
ent: HW - Ch 9 Assignment Score: 0 Save Submit Assignment for Gradi MC.09.033 Question 10 of 16 Check My Work Which of the following statements is CORRECT? a. If a stock has a required rate of return rs = 12%, and if its dividend is expected to grow at a constant rate of 5%, then the stock's dividend yield is also 5%. b. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant. c. Two firms with the same expected dividend and growth rate must also have th same stock price. d. The price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. e. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. Check My Work
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