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The constant dividend growth model:
can be used to estimate the cost of equity for any corporation.
is applicable only to firms that pay a constant dividend.
is highly dependent upon the estimated rate of growth.
is considered quite complex.
considers the risk of the firm.
Study of Investment Analysis and Portfolio Management is a specialized area of study that is aimed at maximising return given a level of risk. The principles of Investment Analysis and Portfolio Management have broadly been applied by large corporate..
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