Question: Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources only: dividend and capital gain In DDM, the risk-adjusted
Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources only: dividend and capital gain In DDM, the risk-adjusted discount rates can be replaced with treasury spot rates By Dividend Discount Model (DDM), if a company never ever pays any cash dividend in the future, its stock should be worth zero Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model In DDM, the stock price is called ex-dividend price because it is the price before current dividend is paid out GE recently announced the news to cut future dividend. The plan hardly affects its current stock price NYSE is a primary market
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