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Business, 27.07.2020 19:01 elysalmeron05

The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows: P0=D1/(rs−g)
If you were analyzing the consumer goods Industry, for which kind of company in the industry would the constant growth model work best?
a. Young companies with unpredictable earnings
b. Mature companies with relatively predictable earnings
c. All companies

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