The constant dividend growth formula P₀ = Div₁/(r - g)assumes A)that dividends grow at a constant rate g, forever only. B)r g only. C)that dividends grow at a constant rate g, forever, and r g only. D)g is never negative only.

Name: The constant dividend growth formula P 0 = Div 1 /(r - g)assumes A)that dividends grow at a constant rate g, forever only. B)r > g only. C)that dividends grow at a constant rate g, forever, and r > g only. D)g is never negative only.
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Question

The constant dividend growth formula P₀ = Div₁/(r - g)assumes A)that dividends grow at a constant rate g, forever only. B)r > g only. C)that dividends grow at a constant rate g, forever, and r > g only. D)g is never negative only.

Quizplus · Accepted Answer

The Answer is C

The Constant Dividend Growth Formula P0 = Div1/(r - G)assumes

The Constant Dividend Growth Formula P₀ = Div₁/(r - G)assumes