1. The value of stock depends in part on future dividends and investors' required return....

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Question

Accounting

1. The value of stock depends in part on future dividends and investors' required return.

a.

True

b.

False

2. The return on an investment in stock depends on both dividends and capital gains.

a.

True

b.

False

3. The dividendgrowth model may be applied only if it is assumed that the growth in dividends will be constant.

a.

True

b.

False

4. The value of a stock should increase if investors' required rate of return declines.

a.

True

b.

False

5. The dividendgrowth model assumes the firm will be liquidated at some specified time in the future.

a.

True

b.

False

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