Question: Using the constant growth dividend valuation model and assuming dividends will growth a constant rate forever, the increase in the value of the stock each
Using the constant growth dividend valuation model and assuming dividends will growth a constant rate forever, the increase in the value of the stock each year should be equal to the
| growth rate in dividends, g. | |
| required return on the stock, rcs. | |
| dividend yield plus the capital gains yield. | |
| dividend yield. |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
