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Which of the following is correct regarding constant growth rate model of stock valuation? Group of answer choices Constant growth rate model of stock valuation
Which of the following is correct regarding constant growth rate model of stock valuation? Group of answer choices
Constant growth rate model of stock valuation assumes that dividends grow at a constant rate indefinitely.
If net income is $5 and dividend paid is $1, the retention ratio is 20%.
If dividend payout ratio is 30% and return on investment is 20%, the growth rate of dividends is 6%.
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