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 the require return remains the same, this will lead to a decreased value of the stock.
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Home » Business » 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