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Which one(s) of the following statements is INCORRECT? In the dividend-discount model, the discount rate...

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Accounting

Which one(s) of the following statements is INCORRECT? In the dividend-discount model, the discount rate is the weighted average cost of capital. Assuming a constant growth of dividend per share after Year N, then share price at Year DivN N denoted by PN = (where Divy represents dividend per share at Year N) TE-8 iii Assuming a constant growth of dividend per share after Year N, then Div2 DivN 1 DiuN+1 TE-8 i ii Divi PO=1+TE OAI 08 OCLE Oda OLLE + (1 + rE)2 + + ... + (1 + rE)N (1 + rE)N
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In the dividend-discount model, the discount rate is the weighted average cost of capital. Assuming a constant growth of dividend per share after Year N, then share price at Year denoted by PN=rEgDivN (where Div N represents dividend per share at Year N ) iii Assuming a constant growth of dividend per share after Year N, then P0=1+rEDiv1+(1+rE)2Div2++(1+rE)NDN+(1+rE)N1rEsDivN+1

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