Except for one of the following the constant dividend growth model is useful to corporate managers because: a. the required rate of return of shareholders is related to the company's level of risk as perceived by investors. b. the dividend stream is influenced by earnings and profitability as well as the dividend policy of management c. the growth rate is related to the efficiency of the company in generating returns on equity d. inflation calculations are incorporated in the model

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 11P
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Except for one of the following the constant dividend growth model is useful to corporate managers because:

a. the required rate of return of shareholders is related to the company's level of risk as perceived by investors.

b. the dividend stream is influenced by earnings and profitability as well as the dividend policy of management

c. the growth rate is related to the efficiency of the company in generating returns on equity

d. inflation calculations are incorporated in the model

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