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Required Conditions for the Constant Growth Model Select all below that are assumptions of this model The growth rate (g) can be zero - this
Required Conditions for the Constant Growth Model
Select all below that are assumptions of this model
The growth rate (g) can be zero - this is the perpetuity formula in Chapter 5 | ||
The growth rate remains constant - this is an assumption of the model | ||
The Required Rate of Return (r) must be larger than the Growth rate (g) | ||
The Required Rate of Return can be negative |
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