Infinite growth is a problem with the dividend discount model because: Seleccione una: a. Dividend growth rates eventually become very small b. The statement is incorrect as infinite growth is not a...


Infinite growth is a problem with the dividend discount model because:


Seleccione una:


a. Dividend growth rates eventually become very small

b. The statement is incorrect as infinite growth is not a problem with the dividend discount model because at reasonably high discount rates, such as 12 percent, dividends received in the distant future are worth very little today

c. The expected stream of dividends is infinite

d. At reasonably high discount rates, such as 12 percent, dividends received in the distant future (40 or 50 years from now) are worth very little today





Jun 06, 2022
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