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Environmental Changes or Shifting Consumer Preferences Often Force a Firm

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Environmental changes or shifting consumer preferences often force a firm to rethink its positioning strategy.

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Definitions:

Dividend Growth Model

A valuation model that estimates the price of a company's stock based on the expected dividends and their growth rate.

After-tax Cost

The cost of an investment or expense after the effects of income tax have been taken into account.

Required Return

The minimum return that investors expect or require from an investment to compensate for its risk.

Corporate Tax Rates

The rate at which businesses are taxed on their profits by the government, varying between countries and sometimes within jurisdictions based on company size or revenue.

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