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Constant Growth Model Assumptions

CORPFN-XHKHUP

Which of the following statements is/are necessary assumptions of the Constant Growth Model? Select ALL that apply.

A

The investor's required rate of return is unknown.

B

The investor's required rate of return is known by the parties and remains constant.

C

The growth rate cannot be greater than or equal to the investor's required rate of return.

D

The dividend rate of growth is constant.