If the expected ROE on reinvested earnings is equal to k,the multistage DDM reduces to
A) V0= (Expected Dividend Per Share in Year 1) /k
B) V0= (Expected EPS in Year 1) /k
C) V0= (Treasury Bond Yield in Year 1) /k
D) V0= (Market return in Year 1) /k
E) none of the above
Correct Answer:
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