Answered: The constant growth model is useful if:…

The constant growth model is useful if: Select one: a. g > ks b. Ks < g c. Ks > g d. g is expected to be constant forever e. Both C and D

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 4QE

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Question

The constant growth model is useful if:

Select one:

g > ks

Ks < g

Ks > g

g is expected to be constant forever

Both C and D

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