FINC300
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FINC300 1
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FINC300 MIDTERM EXAM 2023. 
 
Question 1	2.5 / 2.5 points 
Under which of the following circumstances can you not use the DDM to value a stock? Question options: 
 
When interest rates are higher than stock returns. 
 
When the dividend is not expected to grow 
 
During an economic contraction 
 
When the dividend growth rate is higher than the required return to the stock 
 
 
Question 2	0 / 2.5 points 
If the yield to maturity on a bond increases, what will happen to the bond's capital gains ...
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FINC300•FINC300