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When calculating the value of a stock using the formula P = D/(R-g): The higher the Dividend (D), the lower the price The higher the
- When calculating the value of a stock using the formula P = D/(R-g):
- The higher the Dividend (D), the lower the price
- The higher the growth rate (g), the higher the price
- A higher price is usually derived from a higher discount rate (R).
- There must always be a growth rate (g).
- The higher the Dividend (D), the lower the price
- The higher the growth rate (g), the higher the price
- A higher price is usually derived from a higher discount rate (R).
- There must always be a growth rate (g).
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
