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Question 2 (3 points) Which of the following is NOT an assumptional requirement to use the constant growth dividend model to value stock? a) The

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Question 2 (3 points) Which of the following is NOT an assumptional requirement to use the constant growth dividend model to value stock? a) The growth rate in the dividends must be growing. b) Stock must pay a dividend. c) The growth rate in the dividends must be constant. d) The growth rate in the dividends cannot equal the required return. e) The growth rate in the dividends must be less than the required return. Question 5 (3 points) Saved All else equal, as the growth rate of dividends decreases, the price of a stock a) does not change b) increases c) decreases d) cannot be determined e) converges to the dividend amount

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