Do No Harm: 3 Attempts: 6. Expected returns, dividends, and growth The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference A Aa the required return and dividend growth rate as follows: D1 o = (rs-g) If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? O Young companies with unpredictable earnings O Mature companies with relatively predictable earnings O All companies