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Which of the following statements is correct? If you are standing at the horizon point, then the growth rate from that point on is non-constant.
Which of the following statements is correct?
If you are standing at the horizon point, then the growth rate from that point on is non-constant. |
| When calculating stock value, we must account for all cash flows including the dividend we received at t = 0. |
When calculating stock value, we must account for all cash flows except for those beyond the horizon point. |
You can only use the Gordon constant growth model when the growth rate is constant and when rs < g. |
| The g in the Gordon constant growth model represents the growth rate both in dividends and in expected stock price. |
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