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Constant growth model |
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Constant growth modelAlso called the Gordon-Shapiro model, an application of the dividend discount model that assumes (1) a fixed growth rate for future dividends, and (2) a single discount rate.Constant growth model Similar MatchesConstant ratio planConstant ratio planMaintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments. See: formula investing. Constant returns to scaleConstant returns to scaleA property of a production function such that scaling all inputs by any positive constant also scales output by the same constant. Such a function is also called homogeneous of degree one or linearly homogeneous. CRTS is a critical assumption of the H-O Model of international trade. Contrasts with increasing returns and decreasing returns. Constant pricesConstant pricesSee constant dollars. Constant yield methodConstant yield methodAllocation of annual interest on a zero-coupon security for income tax use. Constant dollarsConstant dollarsDollars of constant purchasing power. That is, corrected for inflation. More precisely includes reference to a base year for comparison, e.g. "in constant 1992 dollars." Same as constant prices. Further Suggestionsconstant dollar planConstant dollar plan Constant elasticity of substitution function Constant dollars Loan Constant |
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