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Where would this process occur?
Constant-Growth Rate
A growth rate applied continuously and at a constant percentage, often used in the dividend discount model to value stocks.
Dividends
Profits given by a corporation to its shareholders as a distribution.
ROE
Return on Equity, a profitability ratio that measures the amount of net income returned as a percentage of shareholders' equity.
Plowback Ratio
The proportion of earnings that a company reinvests into its business rather than distributing to shareholders as dividends, indicating its growth strategy.
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