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Which of the following is/are challenges or weaknesses with the Constant (Gordon) Growth Model? Select ALL that apply.


The Constant (Gordon) Growth Model assumes that there is a steady and perpetual (ongoing) growth rate, which may not be reasonable.


The Constant (Gordon) Growth Model can be used for any and every stock, even when constant growth is not assumed.


The Constant (Gordon) Growth Model cannot adequately value growth stocks without additional assumptions, as they often do not pay dividends.


The Constant (Gordon) Growth Model is extraordinarily sensitive to the growth rate chosen, therefore a minor deviation of the growth rate skews the model.

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