Statements regarding the dividend growth model


Question: Which of the following statements is accurate regarding the dividend growth model? Multiple Choice It can only be used if historical dividend information is available. It considers the risk that future dividends may vary from their estimated values.Incorrect It is only as reliable as the estimated rate of growth. It applies only when a company is currently paying dividends. It is based solely on historical dividend information.

 

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Accounting Basics: Statements regarding the dividend growth model
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