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Question
Nogrowth Corporation expects their dividend to stay at $0.50 per share each year into the foreseeable future. ThereforeA) the stock will be valued at $0.50 times the number of years an investor plans to keep it.
B) the value of the stock can be estimated as $0.50 divided by an investor's required rate of return.
C) the value of the stock cannot be determined using the dividend valuation model because the growth rate is zero.
D) the value of the stock is positive only if the required return is negative.
Answer
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Related questions
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