Question
Which of the following is true for a constant growth stock? As the current dividend decreases the intrinsic value increases As the growth rate increases
Which of the following is true for a constant growth stock?
As the current dividend decreases the intrinsic value increases
As the growth rate increases the intrinsic value increases as long as the required rate of return is greater than the growth rate.
As the current dividend increases the intrinsic value decreases
As the growth rate decreases the intrinsic value increases as long as the required rate of return is greater than the growth rate.
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