What Is the Key Premise of the Dividend Growth Method

question 31

Multiple Choice

What is the key premise of the dividend growth method of share valuation?

• A) The growth in dividends will equal the rate of inflation.
• B) There will be constant growth in future dividends to infinity.
• C) There will be constant growth in future dividends to the planning horizon.
• D) The growth in dividends will equal the rate of increase of the share price.

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