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Question 15 4 pts Assume that the Constant Growth DDM is the appropriate valuation model for a stock index Assume further that the long-term annual
Question 15 4 pts Assume that the Constant Growth DDM is the appropriate valuation model for a stock index Assume further that the long-term annual market return is expected to be 8%, the long-term expected growth rate in dvidends is expected to be 3,5% and that the Dow Jones Industrial Average (DuIA) is fairly valued at 18.000. lfinvestors change their expectation for the long-term growth rate in dividends from 3.5% to 2.5%, what would be the expected change in the value of the DJIA? A. 18.97% B. -18.97% C. +15.38% D. 15.38% 4 pts Question 16 when using relative valuation (Rv), if company A is being compared to companies B through G, the ratios of the calculation of median and standard deviation of the ratios
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