Assume you are using the total payout method for determining the price of a share of stock.When computing the total present value,the total payout is divided by the:
A) required rate of return minus the dividend growth rate.
B) average investor's required rate of return.
C) dividend growth rate.
D) sum of the dividend growth rate and the net income growth rate.
E) required rate of return minus the net income rate of growth.
Correct Answer:
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