Relation between dividend growth and share price growth


Response to the following questions:

1. Using the dividend valuation model with dividends growing at a constant rate, what is the relation between dividend growth, share price growth, and earnings growth?

2. Which of the following situations does not work with the dividend valuation model?

a. no growth in dividends.

b. growth in dividends that is greater than the required rate of return.

c. negative growth in dividends.

d. no current dividends.

If possible, please give examples to better understand your answers.

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Financial Accounting: Relation between dividend growth and share price growth
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