5- Select all the appropriate response(s)

Dividend growth is caused primarily by....

Select one or more:

a.Inflation

b.Accrued expenses

c.Price Subsidies

d.Earnings retention

6- Select all the appropriate response(s)

Select all the conditions that are associated with the Constant Growth Stock Model

Select one or more:

a.The dividend is expected to grow at a constant rate forever

b.The stock price is expected to grow at the same rate

c.The expected capital gains yield is a constant equal to the growth rate

d.The expected dividend yield is constant over time

7- True/False

Most "real world" dividend-paying stocks do exhibit constant growth.

Select one:

True

False

Select all the appropriate response(s)

Investors will buy a security when its ....

Select one or more:

a.The company issues more debt

b.Expected rate of return exceeds the required rate of return

c.When the company builds a new headquarters

d.Value exceeds the current price

10- Select all the appropriate response(s)

A market is informationally efficient if...

Select one or more:

a.Individuals act on insider information

b.Relevant information about asset values can be easily obtained at low cost

c.The market contains many buyers and sellers who act on the information

d.They are talked about on CNBC

QU Match the term with the appropriate response. 1 Question 5 Not yet answered Marked out of 1.00 E(Po) Choose... 10 Do Choose... P Flag question Fin E(D1) Choose... R(Re) Choose... E(g) Choose... is the next expected dividend (assumed to be received in one year) is the value of the stock is the stock's required rate of return is the expected constant dividend growth rate is the last dividend paid Previous page