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    Contemporary Financial Management Study Set 2
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    Exam 8: Common Stock: Characteristics, Valuation, and Issuance
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    The Constant Growth Dividend Valuation Model Does Not Hold When
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The Constant Growth Dividend Valuation Model Does Not Hold When

Question 35

Question 35

Multiple Choice

The constant growth dividend valuation model does not hold when _____.


A) ke is greater than g
B) dividends are growing faster than 4 percent
C) g is greater than ke
D) the current dividend is known

Correct Answer:

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