Part 1 | Attempt 1/2 for 10 pts. About DDM and stock valuation, which statements are CORRECT? Check all that apply: o In DDM, the risk-adjusted discount rates should be higher than the corresponding treasury spot rates Stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. This contradicts DDM model By Dividend Discount Model (DDM), if a company is expected to never ever pays any cash in the future, its stock should be worth zero o Other variables held constant, there is an inverse relation between stock prices and interest rates The stock price computed by DDM is ex-dividend price, meaning the price prior to the current dividend being paid out Submit