Used to value any dividend-paying stock

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Reference no: EM132022994

(1) Write out a formula that can be used to value any dividend-paying stock, regardless of its dividend pattern.

(2) What is a constant growth stock? How are constant growth stocks valued?

(3) What happens if a company has a constant gL that exceeds its rs? Will many stocks have expected growth greater than the required rate of return in the short run (i.e., for the next few years)? In the long run (i.e., forever)?

Reference no: EM132022994

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