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If a stock is correctly priced, based on the Dividend Discount Model (DDM) you know that ____________. - the sum of the stock's expected capital
If a stock is correctly priced, based on the Dividend Discount Model (DDM) you know that ____________.
- the sum of the stock's expected capital gain and dividend yield is equal to the stock's required rate of return
- the stock's required return is equal to the growth rate in earnings and dividends
- the dividend payout ratio is optimal
- the present value of growth opportunities is equal to the value of assets in place
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