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what 2 assumptions must be met to be able to use the above constant dividend growth model to estimate the cost of common equity? Explain

image text in transcribedwhat 2 assumptions must be met to be able to use the above constant dividend growth model to estimate the cost of common equity? Explain

Dividends per Share (DPS) Stock Price Dividend Yield (DY) Capital Gains Yield (CGY or g) Cost of Equity (Internal - Retained Earnings) Flotation Costs Net Price Dividend Yield (DY) with Flotation Costs Capital Gains Yield (CGY or g) Cost of Equity (External - Issue Stock) Conceptual Question Dividends per Share (DPS) Stock Price Dividend Yield (DY) Capital Gains Yield (CGY or g) Cost of Equity (Internal - Retained Earnings) Flotation Costs Net Price Dividend Yield (DY) with Flotation Costs Capital Gains Yield (CGY or g) Cost of Equity (External - Issue Stock) Conceptual

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