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Which of the Following Is an Underlying Assumption of the Constant

Question 58

Multiple Choice

Which of the following is an underlying assumption of the constant growth dividend discount model (DDM) ?


A) Dividends have a constant growth rate
B) The constant growth rate of dividends will continue for an infinite time period
C) The required rate of return is greater than the expected growth rate
D) All of the above
E) None of the above

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