Question 11 (5 points) Which of the following is False? (HINT: Slides 9-11) If a...
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Accounting
Question 11 (5 points) Which of the following is False? (HINT: Slides 9-11) If a company's constant dividend growth rate is negative, the formula for the constant growth model can still be applied. From the constant growth model, if the constant dividend growth rate is equal to zero, a firm's share price is equal to the constant dividend divided by the cost of equity (i.e., g-0). For the constant growth model to hold, a firm's cost of equity (rs) needs to be smaller than its constant dividend growth rate (i.e., rs g)
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