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Explain why? If you are using a dividend valuation approach, how is high dividend growth dealt with for valuation purposes? a. The growing annuity formula
Explain why?
If you are using a dividend valuation approach, how is high dividend growth dealt with for valuation purposes?
a. The growing annuity formula can not be applied if r is less than g.
b. The growing annuity formula can not be applied if r equals g.
c. The formula g =ROE * b can not be applied.
d. The constant growth rate model cannot be applied.
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