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Which of the Following Is Not One of the Reasons

Question 6

Multiple Choice

Which of the following is not one of the reasons two investors both using the constant growth version of the DDM on the same stock might arrive at different estimates of the stock's value?


A) They used different expected returns.
B) They used different growth rates of dividends.
C) They used different required returns.
D) They assume a different payout ratio.

Correct Answer:

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