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Which of the following is true regarding the Gordon growth model? Select one: A. Gordon growth model is also called Price Earnings Valuation model B.
Which of the following is true regarding the Gordon growth model?
Select one:
A. Gordon growth model is also called Price Earnings Valuation model
B. Gordon growth model is only useful when there are comparable other companies
C. Many firms aim to increase their dividends at a constant rate so dividend growth is taken as constant.
D. The dividend growth rate is assumed to be greater than the required return on equity.
E. Even if a stock does not pay a dividend, the Gordon growth model is still useful for computing the stock's price.
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