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Which of the following statements is/are true about the Dividend Growth Model? Select ALL that apply.
It is important to understand the nature of the business to calculate its potential.
It is important to select a proper and appropriate valuation model based on the entity's circumstances.
To understand the potential for growth, it is important to forecast the potential performance of an entity and convert it to a valuation.
The model relies on the certainty that growth rates are always constant in real life.