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Rationale and Basics of Dividend Growth Models

CORPFN-AOPH3G

Which of the following statements is/are true about the Dividend Growth Model? Select ALL that apply.

A

It is important to understand the nature of the business to calculate its potential.

B

It is important to select a proper and appropriate valuation model based on the entity's circumstances.

C

To understand the potential for growth, it is important to forecast the potential performance of an entity and convert it to a valuation.

D

The model relies on the certainty that growth rates are always constant in real life.