The constant growth model assumes which of the following?
A)That there is privately held information
B)That the stock is efficiently priced
C)That there are executive stock options available to managers
D)That there is no restricted stock

Question

Quizplus · Accepted Answer

The constant growth model assumes that the stock is efficiently priced, which means that all available information is reflected in the stock price. It doesn't assume anything about privately held information, executive stock options, or restricted stock.

The Constant Growth Model Assumes Which of the Following