The constant dividend growth model

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Reference no: EM131533222

The constant dividend growth model may be used to find the price of a stock in all of the following situations except:

when the expected dividend growth rate is less than the discount rate.

when the expected dividend growth rate is negative.

when the expected dividend growth rate is zero.

when the expected dividend growth rate is more than the expected return.

the constant growth model works in all known circumstances, it never fails.

Reference no: EM131533222

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