Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 4, Problem 7PS

Dividend discount model If company Z (see Problem 5) were to distribute all its earnings, it could maintain a level dividend stream of $15 a share. How much is the market actually paying per share for growth opportunities?

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A 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.
13... What conditions are necessary for the Constant Dividend Growth Model to be used? Select all that apply. a.The required rate of return must be greater than the dividend growth rate. b.The dividend must be at least $3. c.The company must pay taxes. d.The company's dividend growth rate must be expected to remain constant.

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Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY