The long-term growth rate for the economy is 4% and the required
rate of return for a stock is 10%. The growth rate used in
the constant dividend growth model to value stocks should be: Less
than 4%, greater than 10%, between 4% and 10%
The appropriate required rate of return for a stock is
12%. The stock just paid a $4.00 dividend and the dividend is
expected to grow at a constant 5%. Based on these inputs, the
stock's value is: $60.00, $57.14, $33.33
The long-term growth rate for the economy is 4% and the required rate of return for a stock is 10%. The growth rate use
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