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An analyst complains that the Constant (Gordon) Growth Model yields absurd results. Ho presents severat problems that he has had with the model. Respond to

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An analyst complains that the Constant (Gordon) Growth Model yields absurd results. Ho presents severat problems that he has had with the model. Respond to esch of these comments of why the approach is not sutable or any allernative model should be used. A. The model values stocks which do not pay dividends at zero. B. The model sometimes yields negative values for stocks, when growth tates exceed the discount rate. C. Since cyclical firms have earnings which go up and down, based upon ecenomic conditions, the model can never be used to value a cyclical firm

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