Which of the following statements is NOT true about constant-growth stocks?
A) The cash dividend remains constant over time.
B) Mature companies with a history of stable growth show this pattern.
C) The dividends grow at a constant rate from one period to the next forever.
D) Far distant-dividends have a very small present value and add little to the stock's price.

Question

Quizplus · Accepted Answer

Constant-growth stocks are characterized by dividends that grow at a constant rate, not by dividends that remain constant over time.

Which of the Following Statements Is NOT True About Constant-Growth