Question: Which of these statements is not correct when using the dividend growth model to determine the cost of equity? Multiple Choice The growth in dividends


Which of these statements is not correct when using the dividend growth model to determine the cost of equity? Multiple Choice The growth in dividends can be estimated by calculating the geometric mean of the growth in past dividends. The rate of return is not adjusted for taxes. The dividend growth model can only be applied to large company stocks. The rate of growth must not exceed the required rate of return. The annual dividend used in the computation must be for Year 1 if you use Time O's stock price to compute the return
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