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The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend rate as follows:

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The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend rate as follows: P0 = D1/(rs - g) If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best ? All companies Mature companies with relatively predictable earnings Young companies with unpredictable earnings The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend rate as follows: P0 = D1/(rs - g) If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best ? All companies Mature companies with relatively predictable earnings Young companies with unpredictable earnings

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