The constant growth dividend model requires that ________. A) the ret

The constant growth dividend model requires that ________.

A) the return rate r is greater than the growth rate g of the dividend stream
B) the return rate g is greater than the growth rate r of the dividend stream
C) the return rate r is lesser than the growth rate g of the dividend stream
D) we set g = 0 if the return rate r is greater than the growth rate g of the dividend stream

 

 

ANSWER

Answer: A

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