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    Principles of Corporate Finance Study Set 3
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    Exam 4: The Value of Common Stocks
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    The Constant Growth Formula for Stock Valuation Does Not Work
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The Constant Growth Formula for Stock Valuation Does Not Work

Question 44

Question 44

True/False

The constant growth formula for stock valuation does not work for a firm with a negative growth rate (i.e., a declining growth rate)in its dividend.

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