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Dividend growth model

RRichard8y ago
hi What happens if the return is greater than than the equity required by the market so you are dividing by a negative value. Required rate of return 10% and your dividend growth rate is 11.8%
John MoffatJohn MoffatTutor8y ago#1
That will never happen in the exam (and would not be realistic in real life either - it the growth rate was so high then shareholders would be bound to be requiring a higher return).
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