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The dividend discount model estimates the stock intrinsic value using projected dividends distributed by the firm, and suggests that firms paying high amount of dividends
The dividend discount model estimates the stock intrinsic value using projected dividends distributed by the firm, and suggests that firms paying high amount of dividends will worth more today. In practice, however, a substantial portion of public companies don't pay dividends, but investors are willing to pay high prices for their shares. What could be the possible explanations for this
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