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Which of the following statement is NOT correct about the constant growth dividend discount model ? a) Stock value is higher if its expected earnings
Which of the following statement is NOT correct about the constant growth dividend discount model?
a) Stock value is higher if its expected earnings per share is higher.
b) Stock value is higher if the market capitalization rate is higher.
c) Stock value is higher if the ROE is higher.
d) The model requires that the market capitalization rate is higher than the growth rate
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