Question
Which of the following is a limitation of the dividendminusdiscount model? It requires that the growth rate always be higher than the required rate ofreturn,
Which of the following is a limitation of the dividendminusdiscount model?
It requires that the growth rate always be higher than the required rate ofreturn, which is not realistic.
B.
It cannot handle negative growth rates.
C.
It requires accurate dividendforecasts, which is not possible.
D.
It does not consider past earnings and performance.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
