The Constant Growth Dividend Valuation Model Can Also Be Used

question 40

Multiple Choice

The constant growth dividend valuation model can also be used to estimate the cost of equity capital as:

• A) D₁/[r_s - g].
• B) D₁/P_o - g.
• C) D₁/P_o + g.
• D) P_o(r_s - g).
• E) (D₁/P_o)(1 + r_s).

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