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Write the equation for the gordon growth model

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Reference no: EM131305345

1. In words and symbols, write the two components of the rate of return on a stock investment. Pt = Dt * (1 + g) (rE - g).

2. What is the fundamental value of a share of stock?

3. Write the equation for the Gordon growth model. What key assumption does the Gordon growth model make?

Reference no: EM131305345

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