If the growth rate of dividends (g) is zero, the capital gains yield will be Blank______. Multiple choice question. 100 percent zero cyclical higher than the dividend yield
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If the growth rate of dividends (g) is zero, the
100 percent
zero
cyclical
higher than the dividend yield
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- Please explain it correctly. I'll rate itAccording to the constant dividend growth model, what is the required return on a stock (RE) if the growth rate (g) is zero? Multiple choice question. RE = D1 / P0 RE = D1 – P0 RE = D0 / P0 RE = D1 + P0When using the two - stage dividend growth model,:Multiple Choiceg1 cannot be negative. Pt = Dt/R. g1 must be greater than g2. g1 can be greater than R. R must be less than g1 but greater than g2.
- The formula for calculating the cost of equity capital using the dividend growth model approach is Blank______. (RE denotes the cost of equity, D1 is the next period’s projected dividend, g is the growth rate, and P0 is the current stock price.) Multiple choice question. RE = D1 /(P0 + g) RE = (D1 /P0) /g RE = D1 /P0 + g RE = D1 /P0 – gA decrease in which of the following will increase the current value of a share according to the dividend growth model? Required rate of return. Dividend amount. Dividend growth rate. Number of future dividends, provided the number is less than infinite.Given the constant growth dividend valuation model, the expected percentage growth in vau of a stock is equal to the capital gains yield for that stock. Select one: O True O False Previous page Next page Return ti: General
- The dividend yield (i.e. D1/P0) is a good measure of the expected return on a common stock under which of the following circumstances? g = 0 g > 0 g < 0 g is expected to remain constant over time under no circumstances______ can be interpreted as the capital gains yield. Multiple choice question. Yield to maturity Dividend yield Dividend growth rate Inflation rateA share has expected dividend stream of 10, 20 40 and then 0 from then on (bankruptcy). Its current price is 50. What is its required efficient marrket hypothesis rate of return?
- Need answer pleasethe dividend growth model may be use to value a stock v=Do(1+g) k-g a. what is the value of a stock if: Do=$2 k==10% g=6% b. what is the value of this stock if the dividend is increased to $3 and the other variables remain constant? c. what is the value os this stock if the required return decline to 7.5 percent and the other variables remain constant? d. what is the value of this stock if the growth rate declines to 4 percent and the other variables remin constant? e. what is the value of this stock if the dividend is increased to $2.30, the growth rate declines to 4 percent, and the required return remains 10 percent?Dividend policy may be affected by firm level as well as macroeconomic level factors. Select FIVE variables (at least 2 firm-level factors/variables and at least 2 macroeconomic factors/variables) from the list shown below. Explain and discuss the predicted impact of selected factors on dividend policy using relevant theories. i.e. what theories help to predict the positive or negative impact on the dividend payout and why. FIRM-LEVEL FACTOR/VARIABLE Asset growth rate Positive NPV investment opportunities Capital intensity of the production process Free cash flow generated Number of individual shareholders Relative tightness of ownership coalition Size of largest block holder MACROECONOMIC FACTOR/VARIABLE Transaction costs of security issuance Personal tax rates on dividend income Personal tax rates on capital gain Importance of institutional investors Corporate governance power of institutional investors Capital market, relative to intermediated (bank) financing
