Which of the following is correct regarding constant growth rate model of stock valuation? Group...
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Which of the following is correct regarding constant growth rate model of stock valuation? Group of answer choices
Constant growth rate model of stock valuation assumes that dividends grow at a constant rate indefinitely.
If net income is $5 and dividend paid is $1, the retention ratio is 20%.
If dividend payout ratio is 30% and return on investment is 20%, the growth rate of dividends is 6%.
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