The Constant Growth Dividend Valuation Model Assumes

question 49

Multiple Choice

The constant growth dividend valuation model assumes

• A)a constant annual dividend.
• B)a constant dividend growth rate for no more than the first 10 years.
• C)that the discount rate must be greater than the dividend growth rate.
• D)that the dividend growth rate must be greater that the discount rate.
• E)A and B are true assumptions

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