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    Principles of Corporate Finance Study Set 5
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    Exam 4: The Value of Common Stocks
  5. Question
    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 23

Question 23

True/False

The constant growth formula for stock valuation does not work for firms with negative growth (declining) rates in dividends.

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