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In the Gordon Growth Model, the share price at the end of the second year can be computed as Select one: Q a. D3 /

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In the Gordon Growth Model, the share price at the end of the second year can be computed as Select one: Q a. D3 / (r g) O b. D2 / (r g) 0 0- D1 / (r - 9) Q d. None of these. Clear my choice A series of identical cash flows beginning at the end of period 1 and ending n periods later is called a Select one: Q a. ordinary annuity O b. annuity due 0 or ordinary perpetuity . d. perpetuity due Clear my choice Which of the following statements regarding dividends is TRUE? 0 a. Dividends are a part share of the profits or earnings of a company paid to each shareholder on the basis of the number of shares they hold' 0 b. A firm can increase its dividend by increasing its retention rate. O c. A firm must pay its earnings out to its shareholders. 0 d. A company can increase its dividend payments by issuing more shares. 0 e. All of the options. The price of borrowing money is called Select one: O A. Interest O B. Return O C. Inflation O D. All of the aboveWhich one of the following statements regarding the Annual Percentage Rate (APR) and Effective Annual Rate (EAR) is TRUE? 0 a. The APR can never be greater than the EAR. O b. The EAR is the discount rate for an nyear time interval, where n is more than one year. O c. The APR is the discount rate when compounded more than once a year or less than once a year. 0 d. The annual percentage rate indicates the amount of interest including the effect of compounding 0 e. None of the options

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