Question
Which of the following is true? select all correct choices to get credit If the risk level of a stock decreases and everything else remains
Which of the following is true?
select all correct choices to get credit
If the risk level of a stock decreases and everything else remains the same, the intrinsic value will decrease | |
If the risk level of a stock decreases and everything else remains the same, the intrinsic value will increase | |
If the rate of growth of dividends increases and everything else remains constant, the intrinsic value of the stock does not change | |
Different classes of shares are always different in terms both dividend policies and voting rights. | |
Preferred stock can be modeled as a stock paying always the same dividend. Assuming this is true, then the intrinsic value of preferred stock can be estimated using Gordon's growth model. |
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