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All of the following are disadvantages when using the dividend growth model to estimate the cost of ordinary shares (equity), except: Select one: a. the
All of the following are disadvantages when using the dividend growth model to estimate the cost of ordinary shares (equity), except:
Select one:
a. the market risk premium must be estimated.
b. the approach does not consider risk explicitly.
c. it is only applicable to companies paying dividends.
d. it has the assumption that dividends grow at a constant rate.
e. the cost of ordinary shares (equity) is sensitive to the estimated growth rate (g).
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