Which if the following is are true I The dividend growth model-14010
Which if the following is (are) true? I. The dividend growth model holds if, at some point in time, the dividend growth rate exceeds the stock’s required return. II. A decrease in the dividend growth rate will increase a stock’s market value, all else the same. III. An increase in the required return on a stock will decrease its market value, all else the same.
This multiple choice question (MCQ) is related to the book/course
vu mgt201 Financial Management.
It can also be found in
vu mgt201 Final Term - Quiz No.20.
Which if the following is (are) true? I. The dividend growth model holds if, at some point in time, the dividend growth rate exceeds the stock’s required return. II. A decrease in the dividend growth rate will increase a stock’s market value, all else the same. III. An increase in the required return on a stock will decrease its market value, all else the same.
I, II, and III
I only
III only
II and III only
