Question: When using the two-stage dividend growth model,: P t = D t / R . g 1 cannot be negative. g 1 must be greater

  1. When using the two-stage dividend growth model,:

    Pt = Dt/R.

    g1 cannot be negative.

    g1 must be greater than g2.

    R must be less than g1 but greater than g2.

    g1 can be greater than R.
Answer is D

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