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Problem 15 Part 1 - Attempt 2/5 for 8 pts. Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources
Problem 15 Part 1 - Attempt 2/5 for 8 pts. Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources only: dividend and capital gain GE recently announced the news to cut future dividend. The plan hardly affects its current stock price Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model ONYSE is a primary market By Dividend Discount Model (DDM), if a company never ever pays any cash in the future, its stock should be worth zero In DDM, the risk-adjusted discount rates can be replaced with treasury spot rates In DDM, the stock price is called ex-dividend price because it is the price before current dividend is paid out Submit
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