Constant-growth dividend valuation model

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Reference no: EM131060546

Which of the following statements is correct concerning the constant-growth dividend valuation model?

a) an increase in the required rate of return will increase the value of the stock

b) an increase in the rate of growth of th dividends will decrease the value of the stock

c) the growth rate represents the total rate of return to the shareholder

d) the price of the stock will increase over time so long as the discount rate and the groth rate dont change

Reference no: EM131060546

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