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The Constant Dividend Growth Formula P0 = Div1/(r - G)assumes

Question 58

Multiple Choice

The constant dividend growth formula P0 = Div1/(r - g) assumes


A) that dividends grow at a constant rate g, forever only.
B) r > g only.
C) that dividends grow at a constant rate g, forever, and r > g only.
D) g is never negative only.

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