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Which of the statements concerning the stock valuation model below is true: D1 D2 DH PH --- + --- + - -------- + ---- (1

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Which of the statements concerning the stock valuation model below is true: D1 D2 DH PH --- + --- + - -------- + ---- (1 + k) (1+k)2 (1+ k)H (1 + k) The model requires that the growth rate be greater than the required return it considers or reflects potential capital gains It requires the growth rate to be constant it requires the growth rate to be increasing

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