Question: 50. The Constant Dividend Model for calculating the intrinsic value of a stock is Io =D1/(k-g) where K is the expected return of the market

50. The Constant Dividend Model for calculating the intrinsic value of a stock is Io =D1/(k-g) where K is the expected return of the market and g is growth rate of the company. The growth rate (g) of the company can be calculated by using the Capital Asset Pricing Model.

a. True.

b. False.

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