This question was originally listed as an answer option. The question was "Which of the following statements is most correct." This was the most correct of the following choices.
Answer 1 was the most correct of the choices.
What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.
With growth of business, the first problem that arises is shortage of capital. Infusion of fresh capital to accelerate growth can be arranged from private source or through bank finance.
growth & constant stable
It is the idea that the economic growth is dependent on capital-output ratio (k, calculated as: Total output produced/total capital invested i.e. efficiency) and the saving ratio of the population. The assumptions it makes are: - Output is a function of capital stock - The marginal product of capital is constant. - Capital is necessary for output - The product of the savings rate and output equals saving which equals investment - The change in the capital stock equals investment minus the depreciation of the capital stock It states that Rate of growth of GDP = Savings ratio/ Capital output ratio.
according to harrod domar model the level of savings remain constant to the proportion of income.Harrod-Domar model assumes a simple production function y=f(k), where k is capital
true
The Constant growth model does not address risk; it uses the current market price, as the reflection of the expected risk return preference of investor in marketplace, whereas CAPM consider the firm's risk, as reflected by beta, in determining required return or cost of ordinary share equity.Another difference is that when constant growth model is used to find the cost of ordinary share equity, it can easily be adjusted with flotation cost to find the cost of new ordinary share capital. whereas CAPM does not provide simple adjustment.Although CAPM Model has strong theoretical foundation, the ease of the calculation of the constant growth model justifies it use.
What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.
remains constant
The constant growth valuation model assumes that a stock's dividend is going to grow at a constant rate. Stocks that can be used for this model are established companies that tend to model growth parallel to the economy.
With growth of business, the first problem that arises is shortage of capital. Infusion of fresh capital to accelerate growth can be arranged from private source or through bank finance.
Private Equity Growth Capital Council was created in 2007.
When the bacteria double at a constant rate
Exponential Growth.
growth & constant stable
Exponential growth
Exponential growth :)