You are considering investing in a firm and wish to place a value on the common stock. The dividend on the firm's stock has not changed in the last five years. Absent any information suggesting future changes in the dividend rate, the most appropriate stock valuation model would be the ___________ model.
A) Zero growth.
B) Supernormal growth.
C) Non-constant growth.
D) Growing perpetuity.
E) Bond pricing.
Correct Answer:
Verified
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A)
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