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Which one of the following is an underlying assumption of the dividend growth model?

A stock has the same value to every investor.

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

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

Stocks that pay the same annual dividend have equal market values.

The dividend growth rate is inversely related to a stock's market price.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91396008

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