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Business, 04.03.2021 07:40 neariah24

Select the following statements that are correct. (select 2) A) If the growth rate of a company is greater than the required rate of return we must use a numerical approach to find the PV of those future expected dividends, then use DDM when the growth rate of the firm is expected to slow.

B) As long as a dividend can be expected, even if it is very far into the future, it is possible to use DDM to derive a share price for a company.

C) We do not need to have a consistent discount rate to calculate the share price of a firm.

D) The terminal value of the firm does not typically impact current stock price to a large extent.

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