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The dividend growth model: Multiple Choice O Ignores the risk that future dividends may vary from their estimated values. Can only be used if historical
The dividend growth model: Multiple Choice O Ignores the risk that future dividends may vary from their estimated values. Can only be used if historical dividend information is available. O Assumes that both the dividend amount and the stock price are not constant over time. Uses beta to measure the systematic risk of the firm. Generally produces the same estimated cost of equity for a firm regardless of the source of information used to predict the rate of growth
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