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Which of the following statement with regard to Dividend Discount Model DDM as a stock valuation method is most correct? a . Even if all
Which of the following statement with regard to Dividend Discount Model DDM as a stock valuation method is most correct?
a
Even if all the future dividends of a stock is accurately estimated, the D D D D etc., DDM as a stock valuation method can still be unreliable because of ks or gc estimates.
b
If the stock do not have a dividend history, DDM as a stock valuation method is still possible.
c
All the other choices in this question are actually false statements.
d
When using Constant Growth Model CGM its gc can be greater than its ks estimate.
e
It is a widely adopted method because of its reliability in stock valuation.
f
In a multistage also called supernormal or nonconstant DDM valuation of a stock, its eventual gc can be a constant negative growth rate of future dividends.
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