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The Dividend Growth Model

Question 18

Multiple Choice
The dividend growth model:

The dividend growth model:


A) assumes dividends increase at a decreasing rate.
B) only values stocks at Time 0.
C) cannot be used to value constant dividend stocks.
D) can be used to value both dividend-paying and non-dividend-paying stocks.
E) requires the growth rate to be less than the required return.

Correct Answer:

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