Exam 2 review · Lesson 22 of 45
Constant Growth, Zero Growth & Preferred Stock
Step 1 of 3: LessonTopic videoQuick check
Exam 2 review · Lesson 22 of 45 · 14 min
Constant Growth, Zero Growth & Preferred Stock
Value a stock whose dividend grows at a steady rate (or not at all), split its expected return into dividend yield and capital gains, and decide whether it's a buy.
Inside this lesson
- Why this matters
- The core idea
- The formula
- Worked example 1: a steady dividend payer
- Worked example 2: exam style, CAPM and a buy decision
- Your turn
- Calculator steps
- Common mistakes
- Quick check
- Key takeaways
Unlock this lesson
This comes with the Final Exam Pass. Either of these unlocks it:
- Final Exam Pass$35
- Final Exam Complete (best value)Adds all 5 practice exams$50