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Which of the following statements is CORRECT? From the constant growth model, if the constant dividend growth rate is equal to zero, a firm's share
Which of the following statements is CORRECT? From the constant growth model, if the constant dividend growth rate is equal to zero, a firm's share price is equal to the constant dividend divided by the cost of equity (i.e., g=0). If a stock's dividend is expected to grow at a constant rate of 6% a year, the stock's dividend yield is 6%. For the constant growth model to hold, a firm's cost of equity (rs) needs to be smaller than its constant dividend growth rate (i.e., rs
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