In applying the variable- growth dividend valuation model to a company's share, analysts frequently define the growth rate, g, as equal to

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The growth rate, g, in the variable-growth dividend valuation model is often defined as the return on equity (ROE) multiplied by the firm's retention rate (1 - dividend payout ratio). This is known as the sustainable growth rate.

In Applying the Variable- Growth Dividend Valuation Model to a Company's