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Which of the Following Will Preclude the Use of the Gordon

Question 11

Multiple Choice

Which of the following will preclude the use of the Gordon Model for calculating the intrinsic value of a stock?


A) The constant growth percentage is greater than the market return.
B) D 0 is unknown.
C) The constant growth percentage and the market return are very close numerically.
D) Both a. and c. above will preclude use of the Gordon model.
E) All of the above will preclude use of the Gordon model.

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