1 . 5 . Select the option that is TRUE regarding the dividend growth model.a ) The...
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Question:
Select the option that is TRUE regarding the dividend growth model.a The dividend growth model is based on the principle that investors in ordinary sharesshould be rewarded for the risk they bear.b The expected growth rate in dividends is predicted by the shareholders.c The expected future dividends and the related growth rate are uncertain and therefore it isnot realistic to assume that the growth rate will stay constant.d The dividend growth model is not based on the return that the investor is prepared toaccept on the investment
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