Which of the following assumptions does the constant growth dividend discount model require? I. Dividends grow at

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Which of the following assumptions does the constant growth dividend discount model require?

I. Dividends grow at a constant rate.

II. The dividend growth rate continues indefinitely.

III. The required rate of return is less than the dividend growth rate.

a. I only

b. III only

c. I and II only

d. I, II, and III.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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