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Commerce · Q612

Business Finance

Graduate and Post Graduate · Commerce · question 612

Q612

Which of the following is not included in the assumptions on which Myron Gordon proposed a model on stock valuation?

A.
Retained earnings the only source of financing
B.
Finite life of the firm
Answer
C.
Taxes do not exist
D.
Constant rate of return on the firm's investment

Answer: Option B

Solution

Answer: Option B
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