Question: Using a constant growth dividend valuation model and assuming dividends will grow at a constant rate forever, the increase in the net value of the
Using a constant growth dividend valuation model and assuming dividends will grow at a constant rate forever, the increase in the net value of the stock each year should be equal to the
a. Dividend yield plus the capital gains yield.
b. Required return of the stock, Kcs.
c. Growth rate in dividends, g.
d. Dividend yield.
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