7. The constant growth model can be used to value the stock of firms that have which type (s) of dividends? A. Dividends that change by either a constant amount or a constant rate B. Dividends that change annually by a constant amount or that are zero C. Dividends that change annually by a constant amount D. Dividends that are either constant or change annually at a constant rate E. Only dividends that increase at a constant rate

Question

Business

Rowan Tyler

29 January, 20:36

7. The constant growth model can be used to value the stock of firms that have which type (s) of dividends? A. Dividends that change by either a constant amount or a constant rate B. Dividends that change annually by a constant amount or that are zero C. Dividends that change annually by a constant amount D. Dividends that are either constant or change annually at a constant rate E. Only dividends that increase at a constant rate

+5

Answers (1)

Know the Answer?

Adalyn Preston · Answer 1

E.

Explanation:

Only Dividends that Increase at a Constant Rate. This method of stock valuation believes that dividends will experience continuous increase for indeterminate period of time.