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The Dividends- And- Earnings (D&E) Approach to Share Valuation and the Variable-

Question 10

Multiple Choice

The dividends- and- earnings (D&E) approach to share valuation and the variable- growth DVM approach are similar in that both approaches


A) use the historical dividend growth rate as the key input figure.
B) consider the future selling price of the share but ignore future dividends.
C) consider dividends only and ignore the future selling price of the share.
D) are present- value based.

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