How Do You Estimate Expected Rates of Return in the Constant-Growth

question 84

Essay

How do you estimate expected rates of return in the constant-growth dividend discount model?

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Definitions:

Commercial Property

Real estate used for business activities, including office buildings, retail spaces, warehouses, and industrial sites.

Listing Agreement

A contract between a property owner and a real estate agent, authorizing the agent to act on the owner’s behalf in the sale of the property.

Privity of Contract

A principle in contract law stating that only parties involved in the contract have the right to sue to enforce their rights or claim damages.

Commission

A fee paid for services, typically a percentage of the transaction value, to an agent or salesperson for facilitating or completing a sale.