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What Are the Generic Steps in Any Benchmarking Study and What

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What are the generic steps in any benchmarking study and what are examples of the three types of benchmarking?


Definitions:

Constant Growth Model

A method to value a stock by assuming that dividends grow at a constant rate indefinitely.

Capital Gains

The profit earned from the sale of a capital asset, such as stocks, bonds, or real estate, where the sale price exceeds the purchase price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Efficient Markets Hypothesis

The theory that all available information is already reflected in stock prices, implying it is impossible to consistently achieve higher returns.

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