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The Constant Dividend Growth Model

Question 32

Multiple Choice

The constant dividend growth model:


A) is more complex than the differential growth model.
B) requires the growth period be limited to a set number of years.
C) is never used because firms rarely attempt to maintain steady dividend growth.
D) can be used to compute a stock price at any point in time.
E) most applies to stocks with differential growth rates.

Correct Answer:

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