(a) the 3-stage DDM is a lot more realistic than the 2-stage and H models as it takes into consideration: (i) changes in dividend growth rates (ii) changes in the cost of capital and (iii) changes in the pay-out ratio" Discuss the extent to which this statement is true. (a) the 3-stage DDM is a lot more realistic than the 2-stage and H models as it takes into consideration: (i) changes in dividend growth rates (ii) changes in the cost of capital and (iii) changes in the pay-out ratio" Discuss the extent to which this statement is true