Question: Question 22 1 pts Stock Valuation Methods. Investors require a 15 percent rate of return on Goulet Company's stock (Ri - 15%). The previous dividend
Question 22 1 pts Stock Valuation Methods. Investors require a 15 percent rate of return on Goulet Company's stock (Ri - 15%). The previous dividend was Do - $2. Investors expect the annual dividend to grow at the following compound annual rates: (1) 25 percent in Year 1 (from now to the next year).(2) O percent in Year 2. (3) 5 percent in Year 3. (4) 10 percent in Year 4.(5) 3 percent in Year 5 and every year thereafter. Which Stock Valuation Method is used in the calculations to determine the current theoretical price of this stock, even though this stock has periods of NON-CONSTANT growth of the annual dividend? Gordon's Model Dividend Growth Model Discounted Cash Flow Technique Dividend Discount Model All answer choices are correct Question 23 1 pts Returns on Stock. Assume stocks A and B have had identical stock prices every day for the past three years. Stock A pays a dividend but Stock B does not Which one of these statements applies to these stocks for the last three years? Their annual total rates of return are equal Stock A's total return had to be positive every year. Stock B's holding period return exceeded that of Stock A Stock B's capital gain has exceeded Stock As every year. Stock A's total return has been higher than Stock Er's every year
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