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Which of the following statements is true about the constant growth model?

a. When using a constant growth model to analyze a stock, if an increase in the growth rate occurs while the required return remains the same, this will lead to an increased value of the stock.

b. When using a constant growth model to analyze a stock, if an increase in the growth rate occurs while they require return remains the same, this will lead to a decreased value of the stock.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91586254

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