Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results? The company's stock cannot be a zero growth stock. The company's growth rate needs to change as the company matures. The required rate of return, r s, must be greater than the long-run growth rate.
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Home » Business » Which of the following conditions must hold true for the constant growth valuation formula to be useful and give meaningful results? The company's stock cannot be a zero growth stock. The company's growth rate needs to change as the company matures.