The constant growth dividend model requires that ________
A) the return rate r is greater than the growth rate g of the dividend stream
B) the return rate g is greater than the growth rate r of the dividend stream
C) the return rate r is lesser than the growth rate g of the dividend stream
D) we set g = 0 if the return rate r is greater than the growth rate g of the dividend stream
Answer: A
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What will be an ideal response?