The variable growth common stock valuation model

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Reference no: EM131051065

a. finds the sum of the present value of dividends during the initial growth period and the present value of the price of the stock at the end of the initial growth period.

b. uses the constant growth model to find the present value of the stock during the initial growth period.

c. allows the analyst to specify a relatively fast growth rate during the initial period, followed by a period of stable growth.

d. all of the above.

e. none of the above.

Reference no: EM131051065

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