In the Constant Growth Dividend Valuation Model, It Is Assumed

question 104

Multiple Choice

In the constant growth dividend valuation model, it is assumed that the ____.

• A) dividend growth rate exceeds the required rate of return
• B) firm's future dividend payments are expected to grow at a constant rate forever
• C) dividend cannot be forecast for any future time
• D) firm is experiencing a period of poor performance, after which normal growth is expected

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