Exam 1 – Version 2 – Finance 3320 – Summer 2010

For a constant growth stock it is the dividend yield plus the growth rate in dividends. 56. Discuss the general principle in the valuation of a common stock. Type: Medium. Page: 62. Answer: The value of a common stock is the present value of all the dividends received by owning the stock discounted at the market capitalization rate. ................
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