The constant growth model of equity valuation assumes that _____________.
A. the dividends paid by the company remain constant
B. the dividends paid by the company grow at a constant rate of growth
C. the cost of equity may be less than or equal to the growth rate
D. the growth rate is less than the cost of equity.
Answer: Option B
Solution (By Examveda Team)
The constant growth model of equity valuation assumes that the dividends paid by the company grow at a constant rate of growth.This Question Belongs to Commerce >> Financial Management
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