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Which of the following is an underlying assumption of the dividend growth model (one answer only)? 1=A stocks value changes in direct relation to the
Which of the following is an underlying assumption of the dividend growth model (one answer only)?
1=A stocks value changes in direct relation to the required return on the stock.
2=A stock has the same value to every investor.
3= Stocks that pay the same dividend have equal market values.
4= A stocks value is equal to the discounted present value of the future cash flows it generates.
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