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The dividend discount model: a. Assumes future growth rates in dividends are the same as historical growth rates. b. Only works if growth in dividends
The dividend discount model:
a. Assumes future growth rates in dividends are the same as historical growth rates.
b. Only works if growth in dividends for a company exceeds the growth in dividends for the market
c. Only is useful if an investor is willing to hold the stock until the company starts paying dividends
d. Assumes the risk (i.e. the required rate of return to an investor) does not change in the future
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