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Which statements regarding common stock valuation is correct

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Reference no: EM132965222

Problem 1: Which of the following statements regarding common stock valuation is correct?

A. The constant growth model assumes a negative relationship between changes in the dividend growth rate and changes in the value of a common stock.

B. The constant growth model assumes the dividend growth rate is less than the required rate of return.

C. The nonconstant growth model fails to account for the time value of money.

D. None of the above.

Reference no: EM132965222

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