NO.PZ2018103102000093
问题如下：
Which of the following situations can the Gordon growth model be used?
Situation 1: Company A will generate long-term growth in earnings and dividends that exceeds the cost of equity.
Situation 2: Company B will issue the non-callable form of a traditional type of preferred stock.
Situation 3: Company C will grow at a rate associated with the GDP growth.
选项：
A.Situation 1
B.Situation 2
C.Situation 3
解释：
B is correct.
考点：Gordon Growth Model
解析：Company B发行的是不可赎回的优先股，说明该优先股的红利是固定且永续的，因此适用于GGM.
Gordon Growth Model中股利增长率必须小于权益成本，Company A不适用于模型。Company C的增长率随着经济增长而变动，并不是恒定的，也不适用于该模型。
There's nothing wrong with "associated with GDP growth"
isn't the long term growth rate supposed to be associated with GDP growth?
