Q883
Constant growth model would not be used in condition if growth rate is
A.
greater than dividend paid
B.
equal to realized rate of return
C.
less than realized rate of return
D.
greater than realized rate of return
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Constant growth model would not be used in condition if growth rate is greater than realized rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.