Which of the following statements will always hold true? The constant growth valuation formula is not appropriate to use for zero growth stocks. It will never be appropriate for a rapidly growing...


Which of the following statements will always hold true?





The constant growth valuation formula is not appropriate to use for zero growth stocks.






It will never be appropriate for a rapidly growing startup company that pays no dividends at present—but is expected to pay dividends at some point in the future—to use the constant growth valuation formula.






The constant growth valuation formula is not appropriate to use unless the company’s growth rate is expected to remain constant in the future.





Jun 07, 2022
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