> Moving to another question will save this response. Question 4 Which of the following statement about stock valuation model is TRUE? Residual income is defined as the value of profitable investment projects under residual income model (RIM). In constant growth rate dividend discount model, it will not produce a finite stock value if the dividend growth rate is below the required rate of return An increase in the retention ratio will increase the value of a firm's stock. Constant growth dividend discount model would typically be most appropriate for valuing the stock of rapidly growing company with no dividend payments. Moving to another question will save this response. A Moving to another question will save this response. Question 6 Which statement is FALSE? In two-stage growth dividend discount model, second growth rate (62) must be greater than the required rate of return (k). For firms that do not pay dividends at all, residual income model should be applied to find the stock value. o Clean surplus relationship (CSR) assumes that change in book value per share is equal to earnings per share minus dividends per share. Constant growth model in dividend discount models cannot be applied for firms that pay irregular dividends. Higher the discount rate, lower the stock value in stock valuation models. Moving to another question will save this response. another que HI OR ALLURATE RESULTS ned Test This test has a time limit of 1 hour and 40 minutes. This test will save and submit automatically when the time expires. Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. ltiple Attempts Not allowed. This test can only be taken once ce Completion This test can be saved and resumed at any point until time has expired. The time will continue to run if you leave the test emaining Time: 48 minutes, 04 seconds. Less than half of the time rem uestion Completion Status: Close Window Moving to another question will save this response Question of 15 Jestion 8 points Swewe Regency Co. has a current book value of $13.00 per share and no dividends has been paid. The most recent earnings per share were $3.92 and earnings are expected to grow at 4.5% forever. Stock's betais 0,85. T-bill rate is 3.2% and S&P 500 return is 13.5%. Assume the clean surplus relationship is true. Assuming the company maintains a constant retention ratio, what is the value of the stock according to the residual income model? 541.60 555.20 $38.70 $47.10 Moving to another question will save this response Question 8 of 15 Close Window 7:05 AM pot 00 a 2/27/2020