A stock with constant dividend growth rate is valued as a


1. A stock with constant dividend growth rate is valued as a:

constant growth stock.

fixed coupon rate bond.

zero coupon stock.

perpetuity.

2. Which of the following will increase a money market security’s money market yield?

A. a decrease in the discount rate

b. an increase in the discount rate

c. a decrease in the dollar discount

d. an increase in the dollar discount

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Financial Management: A stock with constant dividend growth rate is valued as a
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