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TB MC Qu. 08-59 Including risk in the dividend-discount... ncluding risk in the dividend-discount model as shown here, if a company reports that it
TB MC Qu. 08-59 Including risk in the dividend-discount... ncluding risk in the dividend-discount model as shown here, if a company reports that it is going to have a difficult time meeting its debt obligations, you would expect the Ptoday to Ptoday= Doday (1+g) rf+rp-g Multiple Choice fall since the risk-free return will rise. rise since the Dtoday will likely fall. fall since the risk premium will likely rise. remain about the same until the Dtoday actually changes < Prev 26 of 30 Next >
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