Every stock can be priced by the dividend discount model

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Type T/F for each statement.

Every stock can be priced by the Dividend Discount Model

Bonds have 2 sources of future cashflow, they include coupon and final maturity value

Stock cashflows are considered more risky because they fixed during the lifetime of the stock

In our pricing models for stocks, if ke is large , the current price Po would be low

In the Gordon growth model, g is assumed to be less than ke, otherwise price can be negative

The one period model for stock prices looks very similar to the zero coupon bond pricing

Interest rates are really only important to be aware of for Bond markets

Efficient Market Hypothesis is a theory to explain only stock prices

Reference no: EM131886691

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