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Business, 05.11.2019 05:31 babygirl226

Which of the following statements is correct? a. if a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.b. the stock valuation model, p0 = d1/(rs − g), can be used to value firms whose dividends are expected to decline at a constant rate, i. e., to grow at a negative rate. c. the price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. d. the constant growth model cannot be used for a zero growth stock, where the dividend is expected to remain constant over time. e. the constant growth model is often appropriate for evaluating start-up companies that do not have a stable history of growth but are expected to reach stable growth within the next few years.

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Which of the following statements is correct? a. if a stock has a required rate of return rs = 12% a...
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