the dividends paid by the company remain constant
the dividends paid by the company grow at a constant rate of growth
the cost of equity may be less than or equal to the growth rate
the growth rate is less than the cost of equity.
✅ The correct answer is B.
The constant growth model of equity valuation assumes that the dividends paid by the company grow at a constant rate of growth.
The constant growth model of equity valuation assumes that the dividends paid by the company grow at a constant rate of growth.