Brief discussion, Topic 1: Is it reasonable to think that a constant growth stock could have g>r?

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Brief discussion,

Topic 1: Is it reasonable to think that a constant growth stock could have g>r? Why and why not?

Topic 2: For a stock to be in equilibrium, what two related conditions must hold?

Topic 3: If a stock is not in equilibrium, explain how financial markets adjust to bring it into equilibrium?

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Jul 25, 2023 07:30 AM

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Brief discussion, Topic 1: Is it reasonable to think that a constant growth stock could have g>r?

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Topic 1 Is it reasonable to think that a constant growth stock could have g r Why and why not In finance g represents the constant growth rate of dividends or earnings for a stock and r denotes the re... View the full answer

Financial Accounting and Reporting a Global Perspective

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