The constant growth model assumes dividends will grow at a constant rate that exceeds the market return.

Name: The constant growth model assumes dividends will grow at a constant rate that exceeds the market return.
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The constant growth model assumes that dividends will grow at a constant rate that is less than the market return. This is because dividends cannot indefinitely outpace the growth of the underlying company and the broader economy.

The Constant Growth Model Assumes Dividends Will Grow at a Constant