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Which of the folowing twements is correct? The cocidiwt growhi DOM model can be used to vatue a stock onil it the stock's dividends are

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Which of the folowing twements is correct? The cocidiwt growhi DOM model can be used to vatue a stock onil it the stock's dividends are expected to grow forever at a constaint rate which is less than the required rate of tepier on the sook. The constant gromil DOM model may be witton as P0=DOir+9) The comiant growth DCA model may be witten as p0 = DOYe 0 9) You wiu thing bo geteirine toe oppropiate ptice to pay for a share of common stook. If you purchase this stock, you plan to hold if for i year. As the end of the year you axpect to sin(0) If it is to be held in isolation and stock rou have oveloped the dota on trree vocks thown in the table beiow. If you are a risk minerizer, you should choose Stock

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