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The relationship between the two key elements of the constant dividend growth model is Question 9...

The relationship between the two key elements of the constant dividend growth model is

Question 9 options:

that Dt+1 is less than the prior one, Dt.

that the growth rate is always positive and greater than the discount rate.

assumes the growth rate is always less than the discount rate.

the long run growth rate is postive

Both B and D.

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Answer #1

please find below the solution... let me know if you need any clarification ..

Correct answer is option : assumes the growth rate is always less than the discount rate.

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