Question
1. Which one of the following statements regarding dividend discount models is not true? A. Different investors often use different discount rates in their calculation.
1. Which one of the following statements regarding dividend discount models is not
true?
A. Different investors often use different discount rates in their calculation.
B. Few money managers use the model to estimate intrinsic value.
C. Future benefits are uncertain and must be estimated.
D. The models are based on estimates.
2. Vapor-Logix Co. shares trade at $42.00 with a justified P/E ratio of 15. If the dividend payout ratio remains at 50% what is the projected dividend per Vapor-Logix share in the next 12 months?
A. $1.40
B. $1.20
C. $1.60
D. $2.80
PLEASE ANSWER BOTH!! THANK YOU
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started