Question: The constant dividend growth model values a share by viewing its dividends as a constant growth perpetuity. Within the constant growth model, which of the

The constant dividend growth model values a share by viewing its dividends as a constant growth perpetuity. Within the constant growth model, which of the following formulas is INCORRECT?

a) g = retention rate return on new investment

b) P0 =

c) Divt = EPSt Dividend Payout Rate

d) rE = - g

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