Corporate Finance Ch 9

The stock valuation model that determines the current stock price by dividing the next annual dividend amount by the excess of the discount rate less the dividend growth rate is called the ____ model. Dividend Growth Model
Next year’s annual dividend divided by the current stock price is called the ___. Dividend Yield
The rate at which a stock’s price is expected to appreciate (or depreciate) is called the ____ yield. capital gains yield
A form of equity which receives no preferential treatment in either the payment of dividends or in bankruptcy distributions is called ____ stock. Common Stock
Payments made by a corporation to its shareholders, in the form of either cash, stock or payments in kind, are called ____. Dividends
Differential Growth refers to a firm that increases its dividend by ____. a rate which is most likely not sustainable over an extended period of time.
The total rate of return on a stock is comprised of which of the following?1. Current Yield2. Yield to Maturity3. Dividend Yield4. Capital Gains Yield 3 and 4
The Scott Co. has a general dividend policy whereby it pays a constant annual dividend of $1 per share of common stock. The firm has 1,000 shares of stock outstanding. The Company ____. Must still declare each dividend before it becomes an actual company liability.

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