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your answer to the nearest cent. $ per share Zero Growth Stocks: The constant growth model is sufficiently general to handle the case of a
your answer to the nearest cent. $ per share Zero Growth Stocks: The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is: P0=vaD the required rate of return. answer to the nearest cent. $ per share Nonconstant Growth Stocks: equations are combined to arrive at the nonconstant growth valuation equation: P0=(1+rg)1D1+(1+ra)2D2++(1+ra)NDN+(1+rg)NP^N \$ per share
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