Question
Please help me study by helping me with this homework question. The non-constant dividend growth model evaluates the current price of a stock based on
Please help me study by helping me with this homework question.
The non-constant dividend growth model evaluates the current price of a stock based on the assumption a stock will:
Question 6 options:
a)increase the dividend amount every other year.
b)pay an increasing dividend for a period of time and then cease paying dividends altogether.
c)pay a constant dividend for the first two quarters of each year and then increase the dividend the last two quarters of each year.
d)grow at a fixed rate for a period of time after which it will grow at a different rate indefinitely.
e)pay increasing dividends for a fixed period of time, cease paying dividends for a period of time, and then commence paying increasing dividends for an indefinite period of time.
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