Which One of the Following Is a Requirement of the Two-Stage

question 92

Multiple Choice

Which one of the following is a requirement of the two-stage dividend growth model?

• A)both growth rates must be less than the discount rate
• B)one of the two growth rates must exceed the discount rate
• C)the first growth rate must exceed the second growth rate
• D)the first growth rate must equal the discount rate
• E)the second growth rate must be less than the discount rate

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