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The dividend growth model: 1.assumes dividends increase at a decreasing rate. 2.only values stocks at Time 0. 3.cannot be used to value constant dividend stocks.
The dividend growth model:
1.assumes dividends increase at a decreasing rate.
2.only values stocks at Time 0.
3.cannot be used to value constant dividend stocks.
4.can be used to value both dividend-paying and non-dividend-paying stocks.
5.requires the growth rate to be less than the required return.
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