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If the constant growth (Gordon, or Constant Growth Dividend Discount) model is to give a reasonable valuation of a stock, which of the following is
If the constant growth (Gordon, or Constant Growth Dividend Discount) model is to give a "reasonable" valuation of a stock, which of the following is not a valid assumption for the model? A) Growth, g, is negative B)There will be no growth, i.e., g is zero. C) The growth rate exceeds the required rate of return D)The required return is exceptionally high (k s > 30%). E) All of the above are workable assumptions and are valid in the sense that the model can be used even if they hold true.
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