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The Two-Stage Dividend Growth Model Assumes the Second-Stage Growth Rate

Question 44

Multiple Choice

The two-stage dividend growth model assumes the second-stage growth rate is


A) Less than the discount rate
B) Less than or equal to the discount rate
C) Less than, greater than, or equal to the discount rate
D) Less than the first-stage growth rate
E) Greater than the first-stage growth rate

Correct Answer:

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