Question : Using data from part a, what would the Gordon (constant : 6611
Using data from part a, what would the Gordon (constant gowth) model value be if he required rate of return was 8% and the expected growth rate was (1) 8% or (2) 12%? Are these reasonable results? Explain.
Is it reasonable to think that a constant growth stock could have g >r? Why or why not?
Solution
5 (1 Ratings )
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