Question

In: Finance

Using the constant growth dividend model, the growth in the stock price matches the growth rate...

Using the constant growth dividend model, the growth in the stock price matches the growth rate in dividends.

True or False

Solutions

Expert Solution

This statement is true. Capital appreciation is equal to growth of dividends or growth of stocks
Price in year 1=Price in Year 0*(1+g)
Dividend iin year 1=Dividend Year 0*(1+g)

jeff jeffy answered 2 years ago
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