The standard assumption in security analysis is that g represents the growth rate for:
A) both dividends and earnings.
B) dividends only.
C) earnings only.
D) dividends and retained earnings.

Question

Quizplus · Accepted Answer

The standard assumption in security analysis is that g represents the growth rate for both dividends and earnings, reflecting the expectation that a company's ability to pay dividends is closely tied to its earnings growth.

The Standard Assumption in Security Analysis Is That G Represents