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Using the dividend growth model, explain why a firm would be hesitant to reduce the growth...

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Finance

Using the dividend growth model, explain why a firm would behesitant to reduce the growth rate of its dividends.

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Value of stock D1 k g where D1 next years expected annual dividend per share k the investors discount rate or required rate of return which can be estimated using the Capital Asset Pricing Model    See Answer
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Using the dividend growth model, explain why a firm would behesitant to reduce the growth rate of its dividends.

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