Question
Consider the following statements on the Gordon Growth model: I. An increase in dividends leads to a lower stock price II. The growth rate cannot
Consider the following statements on the Gordon Growth model:
I. An increase in dividends leads to a lower stock price
II. The growth rate cannot be equal to zero
a.
Both statements are false
b.
Only statement I is correct
c.
Only statement II is correct
d.
Both statements are correct
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
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