Which one of the following is a correct formula for computing a geometric average dividend growth rate?
A) [(1 + D0) + (1 + D1) * (1 + DN) ] N + 1 - 1
B) [(1 + D0) * (1 + D1) * (1 + DN) ] N - 1 - 1
C) [DN/D0]1/N - 1
D) [D0/DN] N - 1
E) [DN/D0] N/1 -1
Correct Answer:
Verified
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