According to the constant growth model, the dividend yield is equal to the required return minus the dividend growth rate.

Name: According to the constant growth model, the dividend yield is equal to the required return minus the dividend growth rate.
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Quizplus · Accepted Answer

In the constant growth model (also known as the Gordon Growth Model), the dividend yield is indeed calculated as the required rate of return minus the dividend growth rate. This model assumes dividends grow at a constant rate indefinitely.

According to the Constant Growth Model, the Dividend Yield Is