"Two firms with the same dividend per share and growth rate must also have the same required rate of return." True or false
"In the Gordon model, the dividend is expected to grow forever at a constant rate, but the expected dividend yield would not be constant if the stock is priced in equilibrium." True or false?
"In the world of the Gordon Model, if the stock is priced in equilibrium, the capital gain yield is equal to the dividend growth rate." True or false?
Suppose that a company has a major change in its investment policy and as a consequence, the beta of its stocks is lower than before but the growth rate is also lower than before. Assuming that other factors remain constant, these two changes would offset each other and thus the stock price would not be affected." True or false?
"In the Gordon model, the dividend is expected to grow forever at a constant rate, and this rate is equal to the expected capital gain yield if the stock is priced in equilibrium." True or false?
"Preferred stocks are more risky than bonds; therefore, the yield (before tax) on preferred stocks has been generally higher than that on the corporate bonds." True or false?
"Preferred stock has a fixed amount of dividends that must be paid before dividends can be paid on common stock. A failure to make this payment will surely lead to bankruptcy." True or false?