A major limitation of the dividend discount model (DDM) is that _______________. a. It is extremely complicated
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A major limitation of the dividend discount model (DDM) is that _______________.
a. It is extremely complicated to use
b. It cannot be used with companies that do not pay dividends
c. It must always be used in conjunction with another metric
d. None of the above
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d None of the above The main limitation of the div...View the full answer
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This video discusses the fundamental idea and workings of the dividend discount approach to computing the present value of a share. The video explains why and how to compute share present values as well as how dividend growth may impact market value calculations.
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