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The basic assumption of the Gordon growth model is that a. dividend payments will grow at a constant rate. b. bonds are perfect substitutes for

The basic assumption of the Gordon growth model is that

a. dividend payments will grow at a constant rate. b. bonds are perfect substitutes for common stock. c. dividends will grow at a faster rate than the required return. d. the firm will never pay dividends. e. no earnings will be retained by the firm to finance growth prospects.

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