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Which one of the following is an underlying assumption of the dividend growth model? A stock has the same value to every investor. A stock's
Which one of the following is an underlying assumption of the dividend growth model?
A stock has the same value to every investor. |
A stock's value is equal to the discounted present value of the future cash flows which it generates. |
A stock's value changes in direct relation to the required return. |
Stocks that pay the same annual dividend have equal market values. |
The dividend growth rate is inversely related to a stock's market price. |
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