Common Stock Valuation & Types of Growth


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question 1 of 3

What is the purpose of stock valuation?

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1. Which of the following growth valuation methods assumes no change in the dividend rate?

2. What is a dividend?

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About This Quiz & Worksheet

To have a healthy grasp on the stock market, you'll want to have a good understanding of stock valuation and growth. Quiz questions will ask you about various types of growth methods.

Quiz & Worksheet Goals

With this quiz, you'll assess your understanding of:

  • Stock valuation purposes
  • Growth valuation methods
  • Dividends
  • Two-stage and nonconstant growth stock valuation methods
  • Constant-growth valuation methods

Skills Practiced

This assessment will test the following skills:

  • Interpreting information - verify that you can read information regarding the significance of stock valuation and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about constant-growth valuation methods
  • Defining key concepts - ensure that you can accurately define main phrases, such as dividends and two-stage growth stock valuation

Additional Learning

To learn more, check out the accompanying lesson called Common Stock Valuation & Types of Growth for a review of the following valuation methods:

  • Zero-growth
  • Constant-growth
  • Two-stage
  • Nonconstant growth