The Constant Dividend Growth Model Is

question 42

Multiple Choice

The constant dividend growth model is:

• A)generally used in practice because most shares have a constant growth rate.
• B)generally used in practice because the historical growth rate of most shares is constant.
• C)generally not used in practice because most shares grow at a non constant rate.
• D)generally not used in practice because the constant growth rate is usually higher than the required rate of return.
• E)based on the assumption the FTSE 100 represents a good estimate of the market index.

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