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13. Which of the following statements is FALSE of the dividenddiscount model? a. The dividenddiscount model values the stock based on a forecast of the
13. Which of the following statements is FALSE of the dividenddiscount model? a. The dividenddiscount model values the stock based on a forecast of the future dividends paid to shareholders. b. The simplest forecast for the rm's future dividends states that they will grow at a constant rate, i.e., forever. As rms mature, their growth slows to rates more typical of established companies. d. We cannot use the dividenddiscount model to value the stock of a rm with rapid or changing growth. 0
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