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Please note it is asking what is NOT a valud assumption. 20....

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Accounting

Please note it is asking what is NOT a valud assumption.

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20. If the model below is to give a "reasonable" valuation of a stock, which of the following is not a valid assumption for the model? Po = D (1+g) 1-g g. is negative. b. There will be no growth, i.e., g is zero. c. The growth rate exceeds the required rate of return. d. The required return is exceptionally high (rs > 30%). b. There will be no growth, i.e., g is zero. c. The growth rate exceeds the required rate of return. d. The required return is exceptionally high (rs > 30%). a. Growth, g, is negative

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