Question: A security analyst estimates that the dividend will be growing at a constant growth rate. The security analyst should also implicitly assume that: Question 24

A security analyst estimates that the dividend will be growing at a constant growth rate. The security analyst should also implicitly assume that:

Question 24 options:

1)

The stock residual income should have the same growth rate

2)

The dividend growth rate is also the stock dividend yield

3)

The stock capital gain yield is equal to the dividend growth rate

4)

The free cash flow to equity has the same growth rate as the dividend growth rate.

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