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Business, 29.10.2019 21:31 vjackie101ov3kju

Which of the following statements is correct? group of answer choices 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. if a stock has a required rate of return rs = 12% and its dividend is expected to grow at a constant rate of 5%, then the stock’s dividend yield is also 5%. the price of a stock is the present value of all expected future dividends, discounted at the dividend growth rate. 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. the constant growth model cannot be used for a zero growth stock, wherein the dividend is expected to remain constant over time.

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