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Advantages of using the h model

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Which of the following statements regarding the advantages of using the H Model to price the equity of a firm is most likely to be accurate?

a. It has a reasonable decline in growth rate assumption.

b. It is more accurate when a large difference between high growth rate and low growth rate exists.

c. It considers rapidly increasing growth rates in dividends.

d. It can be used when a firm pays no dividends.

Reference no: EM132398357

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