4. Dividend discount model (S4.3) True or false? a. All stocks in an equivalent-risk class are priced

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4. Dividend discount model (S4.3) True or false?

a. All stocks in an equivalent-risk class are priced to offer the same expected rate of return.

b. The value of a share equals the PV of future dividends per share.

c. The value of a share equals the PV of earnings per share assuming the firm does not grow, plus the NPV of future growth opportunities.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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