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An example of the growth factor in common stock is retaining profits in order to reinvest into the firm

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An example of the growth factor in common stock is retaining profits in order to reinvest into the firm

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What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.

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A growth stock.

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a growth stock

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a growth stock

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