Dividends for stock grow forever at constant rate

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Reference no: EM132018062

1. If we assume the dividends for a stock grow forever at a constant rate, then we are also assuming:

the stock's price grows faster than the dividends.

the stock's price grows slower than the dividends.

the stock's price grows at the same rate as the dividends.

2. The Family Practice Clinic has long-term debt of $567,000 as of December 31, 2009 What is the equivalent value of long-term debt in 2005? Use the following hypothetical consumer price index information below to determine the appropriate value.

Year CPI

2009 283.4

2008 258.4

2007 229.9

2006 202.9

2005 186.1

Reference no: EM132018062

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