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Consider the following statements on the Gordon Growth model: I. An increase in dividends leads to a lower stock price II. The growth rate cannot

Consider the following statements on the Gordon Growth model:

I. An increase in dividends leads to a lower stock price

II. The growth rate cannot be equal to zero

a.

Both statements are false

b.

Only statement I is correct

c.

Only statement II is correct

d.

Both statements are correct

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