Asked by
Darrien Mitchell
on Nov 08, 2024
Verified
The common stock of the Kenwith Co. pays a constant annual dividend. Thus, the market price of Kenwith stock will:
A) Also remain constant.
B) Increase over time.
C) Decrease over time.
D) Increase when the market rate of return increases.
E) Decrease when the market rate of return increases.
Constant Annual Dividend
This refers to dividends that are paid out to shareholders at a constant rate each year, without fluctuation.
Market Price
The rate at which services or assets are being marketed currently.
- Evaluate the consequence of consistent and escalating dividends on the determination of stock prices.
Verified Answer
SC
Learning Objectives
- Evaluate the consequence of consistent and escalating dividends on the determination of stock prices.