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If you use the constant dividend growth model to value a stock, which of the following is certain to cause you to decrease your estimate
If you use the constant dividend growth model to value a stock, which of the following is certain to cause you to decrease your estimate of the current value of the stock?
- Decreasing the required rate of return for the stock.
- Increasing the estimate of the amount of next year's dividend.
- Increasing the firm's long run growth rate.
- Decreasing the rate of inflation in the economy.
- all of the above
- none of the above
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