The constant growth dividend discount model will not produce a finite value if the dividend growth rate
Question:
The constant growth dividend discount model will not produce a finite value if the dividend growth rate is which of the following?
a. Above its historical average
b. Above the required rate of return
c. Below its historical average
d. Below the required rate of return.
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The correct answer is d Below the required rate of return Accordi...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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