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Which is not true about the Generalized Dividend Valuation Model and the Gordon Growth Model? Question options: Both assume the value of the stock is
Which is not true about the Generalized Dividend Valuation Model and the Gordon Growth Model?
Question options:
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Both assume the value of the stock is based on the PV of the estimated cash flows
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The Gordon Model adds a constant growth assumption to the dividend projections
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Both use a required return rate in the denominator, that should reflect the risk
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Both benefit from no estimation risk with known risk and growth rates, resulting in confident estimates
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