MCQOPTIONS
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| 1. |
The constant growth model of equity valuation assumes that _____________. |
| A. | he dividends paid by the company remain constant |
| B. | he dividends paid by the company grow at a constant rate of growth |
| C. | he cost of equity may be less than or equal to the growth rate |
| D. | he growth rate is less than the cost of equity. |
| Answer» C. he cost of equity may be less than or equal to the growth rate | |