Which of the statements below is FALSE? A) In estimating the current price using the constant growth dividend model, we let g be the growth rate on the dividend stream and r be the rate of return required by the potential buyer of the stock. B) Constant growth means that the percentage increase in the dividend is the same each year. C) Div₀ refers to the dividends that were just been paid to the current owner of the stock D) One unlikely dividend pattern is to raise or grow dividends by a fixed amount at fixed intervals.

Question

Quizplus · Accepted Answer

A fixed amount increase at fixed intervals is a common dividend pattern, not unlikely.

Which of the Statements Below Is FALSE