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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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