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What can you say about the value of stock with constant dividendgrowth where the growth rate is larger than the discount rate?In the dividend discount model, the stock price increases at therate of dividend growth (g), and g=ROE*b. Why or why not is italways in the best interest of shareholders if a company decides toreinvest a larger portion of its net income (increasing b)? Assumeconstant and positive ROE.What are similarities between buying stocks on margin and buyingcall options for that stock? (Name any two)How can a business use future for risk management?How can an investor use derivative for risk management?
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