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Explain the Three Distinct Types of Ethical Principles and Discuss

question 140

Essay

Explain the three distinct types of ethical principles and discuss the limitations of each:


Definitions:

Dividend Growth Rate

The pace at which a business boosts the dividends it distributes to its investors over a period.

Required Return

This is the minimum profit that an investor expects to make on an investment, reflecting the level of risk involved.

Constant Growth

A model assuming that the value of an investment grows at a steady, unchanging rate indefinitely.

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