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Which one of the following statements is TRUE?

Group of answer choices

If the company only pays dividends and doesn't engage in repurchases, then the book value of equity will equal the intrinsic value of equity.

If the dividend growth model is used, the dividend yield plus the capital gains yield is equal to the required return on stock.

The preemptive right gives each shareholder the right to sell their shares when they are issued.

If the dividend growth model is used, the P/E ratio plus the growth rate is equal to the required return on stock.

In a proxy fight, stockholders and bondholders compete in the courts for the right own the firm

Which one of the following statements is TRUE?

Group of answer choices

If the company only pays dividends and doesn't engage in repurchases, then the book value of equity will equal the intrinsic value of equity.

If the dividend growth model is used, the dividend yield plus the capital gains yield is equal to the required return on stock.

The preemptive right gives each shareholder the right to sell their shares when they are issued.

If the dividend growth model is used, the P/E ratio plus the growth rate is equal to the required return on stock.

In a proxy fight, stockholders and bondholders compete in the courts for the right own the firm.

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