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Considering the dividend discount model, which statement is FALSE?During periods of high growth, it is not unusual for firms to pay out 100% of their earnings to shareholders in the form of dividends.A common approximation is to assume that in the long run, dividends will grow at a constant rate.The dividend each year is the firm's earnings per share (EPS) multiplied by its dividend payout ratio.There is tremendous uncertainty associated with any forecast of a firm's future dividends, and therefore its dividend growth rate.
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