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unfortunately, just failed on exam I......
Still recall one of the question hoping post here to get the right anwser.
Based on dividned pricing model, if r=g, what is the value of stock?
only remember two choices:
1. infinity
2. market value
Anyone can help here to provide the right answer?
Many thanks

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关键词：question Quest Exam Real AMI question

it's a trap. when the denominator approaches zero, the formula lose the meaning, when the risk free interest rate equals the economic growth rate, the market value ought to be real value of the company.