Question: The constant dividend growth formula P 0 = Div 1 /( r g ) assumes. Answer choices: 1. that dividends grow at a constant rate

The constant dividend growth formula P0 = Div1/(r g) assumes.

Answer choices:

1. that dividends grow at a constant rate g, forever only.

2. r > g only.

3. that dividends grow at a constant rate g, forever, and r > g only.

4. g is never negative only.

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