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One Share Valuation Model Holds That the Value of a Share

Question 28

Multiple Choice

One share valuation model holds that the value of a share is a function of its future dividends, and that the dividends will increase at an annual rate which will remain unchanged over time. This share valuation model is known as the


A) constant- growth dividend valuation model.
B) dividend reinvestment model.
C) holding period return model.
D) approximate yield model.

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