Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources only: dividend and capital gain Stocks that don't pay dividend,
Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources only: dividend and capital gain Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model NYSE is a primary market 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 GE recently announced the news to cut future dividend. The plan hardly affects its current stock price By Dividend Discount Model (DDM), if a company never ever pays any cash dividend in the future, its stock should be worth zero Which statements are CORRECT? Check all that apply: Shareholder's total return comes from two sources only: dividend and capital gain Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model NYSE is a primary market 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 GE recently announced the news to cut future dividend. The plan hardly affects its current stock price By Dividend Discount Model (DDM), if a company never ever pays any cash dividend in the future, its stock should be worth zero
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started