The dividend growth model: Multiple Choice can be used to value...

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Accounting

The dividend growth model:

Multiple Choice

  • can be used to value both dividend-paying and non-dividend-paying stocks.

  • only values stocks at Time 0.

  • requires the growth rate to be less than the required return.

  • cannot be used to value constant dividend stocks.

  • assumes dividends increase at a decreasing rate.

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