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The Gordon growth model (Stock price = Dividends D New Year / r – g) ) assumes that dividends will remain at their current level indefinitely

The Gordon growth model (Stock price = Dividends D New Year / r – g) ) assumes that
dividends will remain at their current level indefinitely

 

dividends will grow at the current rate of r forever

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dividends will grow at the constant rate of g forever

 

dividends will remain at next year’s level indefinitely

 

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