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Then match each of the terms to its definition below - focus on what these represent economically The regulary scheduled payment to shareholders A Dividend

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Then match each of the terms to its definition below - focus on what these represent economically The regulary scheduled payment to shareholders A Dividend The Market Price Expected Growth Rate C. this is the rate of return on the stock based on its level of risk Required Rate of Return DP 3.9 QUESTION 5 Some Model Assumtions and Restrictions Read Section 9-5D Required Conditions for the Constant Growth Model Select all below that are assumptions of this model The growth rate (g) can be zero - this is the perpetuity formula in Chapter 5 m The Required Rate of Return can be negative The growth rate remains constant - this is an assumption of the model The Required Rate of Return () must be larger than the Growth rate (9)

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