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Suppose a student, Jessica, decides to use the constant-growth dividend discount model equation to find the return (R) on a stock even though the stock
Suppose a student, Jessica, decides to use the constant-growth dividend discount model equation to find the return (R) on a stock even though the stock pays a constant annual dividend. Assuming her calculations are correct, which one of the following must equal zero if a firm pays a constant annual dividend? A. Market value per share B. Book value per share C. Total return D. Capital gains yield E. Dividend yield
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