Based on the dividend growth model, what are the two components of the total return on a
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Based on the dividend growth model, what are the two components of the total return on a share of stock? Which do you think is typically larger?
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The two components are the dividend yield and the capital ...View the full answer
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Related Book For
Essentials Of Corporate Finance
ISBN: 9781265414962
11th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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This model assumes that the required rate of return will remain the same for the foreseeable future and also assumes that the growth rate is going to be constant. The same results will be obtained using the sustainable growth rate formula that states g = b x ROI
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