Useful for estimating stock intrinsic value

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Reference no: EM13950167

The dividend growth model is only useful for estimating a stock’s intrinsic value when the

a. Stock's beta is strictly less than the market beta

b. Stock's required return is strictly less than the constant growth rate in dividends.

c. stock’s growth rate in dividends is strictly greater than zero.

d. Stock pays dividends

Reference no: EM13950167

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