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What Is the Key Premise of the Dividend Growth Method

Question 31

Multiple Choice

What is the key premise of the dividend growth method of share valuation?


A) The growth in dividends will equal the rate of inflation.
B) There will be constant growth in future dividends to infinity.
C) There will be constant growth in future dividends to the planning horizon.
D) The growth in dividends will equal the rate of increase of the share price.

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