Answer:
The correct answer is letter "D": requires that the dividend growth rate be less that the required rate of return.
Explanation:
The Gordon Growth Model is used to calculate the intrinsic value of a stock today, based on the stock's expected future dividends. It is widely used by investors and analysts to compare the predicted stock value against the actual market price. Its formula is:
P = D / r-g
where:
- P= current stock price
- g= dividend growth rate expected
- r= rate of return
- D= value of the dividends for the next year
The formula has limitations because <em>the rate of return must be higher than the dividend growth rate expected</em>. Otherwise, the resulting stock price would be negative and the model would be useless.
What is the task ? Mathematical equations?
Answer:
C
Explanation:
A mature leader is described as a selfless leader who is willing to satisfy others people first at the expense of his own desire. He is distinguished with his way of thinking which is far ahead of the conventional pattern of the way other people around think.
Ashe believes that rules should not just be interpreted by the letters considering its limitations , one major attribute of a mature thinker is that he views personal experience as the most critical element in decision making.
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