Which of the following is an underlying assumption of the, Ask an Expert

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Which of the following is an underlying assumption of the dividend growth model (one answer only)?

1=A stock's value changes in direct relation to the required return on the stock.

2=A stock has the same value to every investor.

3= Stocks that pay the same dividend have equal market values.

4= A stock's value is equal to the discounted present value of the future cash flows it generates.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92378973

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