The constant dividend growth model

Assignment Help Financial Management

Reference no: EM131533222

The constant dividend growth model may be used to find the price of a stock in all of the following situations except:

when the expected dividend growth rate is less than the discount rate.

when the expected dividend growth rate is negative.

when the expected dividend growth rate is zero.

when the expected dividend growth rate is more than the expected return.

the constant growth model works in all known circumstances, it never fails.

Reference no: EM131533222

Questions Cloud

What is explanatory and response variable : a) What is explanatory and response variable? b) Is this an experimental study or an experiment? Explain why?

What are the effects on cash flow : What are the effects on cash flow, if sales increase from $8 million to $8.8 million?

How you can apply at least four of weekly course learning : Discuss how you can apply at least four of the weekly course learning outcomes throughout this course to your professional or personal life.

Vulnerable population summary and proposed program : The first of your two written assignments for the course will provide a beginning framework that you will utilize in the development of your

The constant dividend growth model : The constant dividend growth model may be used to find the price of a stock in all of the following situations except:

What does the full-disclosure principle prescribe : Using the retail method and the following data, estimate the cost of ending inventory.

Information on neurotransmitters : Information on neurotransmitters and their influence on brain activity as well as other details important to neurotransmission.

Analyzing new potential business : In analyzing a new potential business macdonald publishing’s financial staff is estimating an initial capital expenditure of $4.2 million.

How a new hiring system would support that strategy : Using the Business Strategy statement and information from the Case Study, explain how a new hiring system would support that strategy.

User Account

All Pages