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The model says that the price of a stock is determined only bythe present value of the div

The model says that the price of a stock is determined only bythe present value of the dividends. Obviously, if a firm isnot paying dividends or has an erratic growth rate, the approachwill not work because it assumes that dividends continue to grow ata constant rate for an extended period of time.

Dec 01 2019 View more View Less

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