The Constant Growth Model Can Be Used to Value the Stock

question 57

Multiple Choice

The constant growth model can be used to value the stock of firms that have which type(s) of dividends?

• A)Dividends that change by either a constant amount or a constant rate
• B)Dividends that change annually by a constant amount or that are zero
• C)Dividends that change annually by a constant amount
• D)Dividends that are either constant or change annually at a constant rate
• E)Only dividends that increase at a constant rate

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