The constant growth valuation model is primarily applicable to firms in mature markets.

Name: The constant growth valuation model is primarily applicable to firms in mature markets.
Brand: Quizplus
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Quizplus · Accepted Answer

The constant growth valuation model, also known as the Gordon Growth Model, is based on the assumption of stable and constant growth rates, which are more likely to be found in mature companies in established markets. Therefore, the model is primarily applicable to firms in mature markets.

The Constant Growth Valuation Model Is Primarily Applicable to Firms