One of the assumptions of the two stage growth model is that the dividends drop immediately from

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One of the assumptions of the two stage growth model is that the dividends drop immediately from the high growth rate to the perpetual growth rate. What do you think about this assumption? What happens if this assumption is violated?

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Mar 13, 2014 08:20 AM

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Fundamentals of corporate finance

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