Question
Which of the following is a limitation of the dividend-discount model? A) It cannot handle negative growth rates. B) It requires accurate dividend forecasts, which
Which of the following is a limitation of the dividend-discount model?
| A) It cannot handle negative growth rates.
| ||
| B) It requires accurate dividend forecasts, which is not possible. | ||
| D) It does not consider past earnings and performance. | ||
| C) It requires that the growth rate always be higher than the required rate of return, which is not realistic.
|
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
