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adegob adegob
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3 years ago
If the model below is to give a "reasonable" valuation of a stock, which of the following is NOT a valid assumption of the model?
Po = [Do(1 + g)] / (Ke - g)

▸ Growth, g, is negative.

▸ There will be no growth.

▸ The growth rate exceeds the required rate of return.

▸ The required return is exceptionally high (Ks > 30%).
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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jamesbovejamesbove
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3 years ago
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adegob Author
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3 years ago
this is exactly what I needed
lubennick
wrote...

Yesterday
Thanks
Loruiz15
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2 hours ago
Good timing, thanks!
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