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Author Question: If the model below is to give a reasonable valuation of a stock, which of the following is NOT a ... (Read 93 times)

sam.t96

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on: Jul 10, 2018
If the model below is to give a reasonable valuation of a stock, which of the following is NOT a valid assumption of the model?
  Po = Do(1 + g) / (Ke - g)
 
  A) Growth, g, is negative.
  B) There will be no growth.
  C) The growth rate exceeds the required rate of return.
  D) The required return is exceptionally high (Ks > 30).

Question 2

Common stock is a vehicle for selling ownership and another way to raise money for operations, expansion, or other business needs.
 
  Indicate whether the statement is true or false.


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livaneabi

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Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

Answer: TRUE


sam.t96

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Reply #2 on: Jul 10, 2018
Correct answers!


livaneabi

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Reply #3 on: Jul 10, 2018
Great! Please up vote :D


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