The Constant-Growth Dividend Model Will Provide Invalid Solutions When

question 44

Multiple Choice

The constant-growth dividend model will provide invalid solutions when:

• A) the growth rate of the share exceeds the required rate of return for the share.
• B) the growth rate of the share is less than the required rate of return for the share.
• C) the growth rate of the share equals the dividend yield for the share.
• D) None of the above.

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