Question 9 Which of the following statements is FALSE? For stocks that do not pay dividends, we can use price multiples to estimate the value of these stocks One disadvantage of the price multiples valuation model is that companies may have negative PE ratios the constant growth dividend valuation model does not hold when dividend growth rate is less than cost of equity One advantage of the dividend valuation model is that dividends are less volatile than earnings, less sensitive to short-term fluctuation Previous