What is the importance of knowing the value of the preference share using the zero-growth model?
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- Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R). And what are the assumptions and the limitations of this model? What can be said about the dividend growth model? Similarly what can be said about the capital asset pricing model?In what circumstances is it most important to use multistage dividend discount models rather than constant-growth models?When is it appropriate to use the dividend valuation models, such as the Zero Growth Model, constant growth model and variable growth model, in estimating the price of a stock?
- What is Capital Asset Pricing and is it better then Dividend Valuation Model? If yes, on what grounds?which between the two is better for you, the Book Value per Share approach or the P/E (Price Earnings) Multiples approach? Why?Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R). And what are the assumptions and the limitations of this model? Is it the PEG ratio or not??
- Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?Explain Gordon Dividend Discount Model?Which one of the following statements is correct concerning both the dollar return and the percentage return on a share investment? a. The dollar return is dependent on the size of the investment while the percentage return is not. b. The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. c. The dollar return considers the time value of money while the percentage return does not. d. Dollar returns are based on capital gains while percentage returns are based on the total rate of return. Clear my choice