Which one of the following statements is NOT true about constant-growth stocks?
a. Dividend stays constant over time.
b. Mature companies with a history of stable growth show this pattern.
c. Dividends grow at a constant rate each period forever.
d. Dividends that are to be paid out in the distant future have a very small present value and add little to the stock's price.
Answer: A
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FIN202 Chapter 9
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