Which of the Following Statements Concerning the Constant Growth Dividend

question 45

Multiple Choice

Which of the following statements concerning the constant growth dividend valuation model is true?

• A) The required rate of return must exceed the growth rate.
• B) The dividend growth rate must be bigger than 8%.
• C) The growth rate must increase every year.
• D) The required rate of return must be equal to the growth rate for dividends.

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