Question: 5. If the model below is to give a reasonable valuation of a stock, which of the following is not a valid assumption for the

 5. If the model below is to give a "reasonable" valuation

5. If the model below is to give a "reasonable" valuation of a stock, which of the following is not a valid assumption for the model? Do(1+g) Po 1,-8 a. Growth, g, is negative. b. There will be no growth, i.e., g is zero. c. The growth rate exceeds the required rate of return. d. The required return is exceptionally high (rs > 30%). e. All of the above are workable assumptions and are valid in the sense that the model can be used even if they hold true

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