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Constant growth valuation formula

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Reference no: EM13722327

Which of the following conditions must hold true for eth constant growth valuation formula to be useful and give meaningful results?

a. the required rate of return, rs, must be greater than the long run growth rate.

b. the company's stock cannot be a zero growth stock.

c. the company's growth rare needs to change as the company matures.

Reference no: EM13722327

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