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Which two of the following five statements are correct? Select two alternatives: During periods of high growth, it is not unusual for firms to pay
Which two of the following five statements are correct? Select two alternatives: During periods of high growth, it is not unusual for firms to pay out 100% of their earings to shareholders in the form of dividends. We should use the general dividend discount model to value the stock of a firm with rapid or changing growth. The capital gain is the difference between the expected sale price and the purchase price of the stock. Estimating dividends, especially for the distant future, is difficult. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate
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