1. Which of the following is a problem using the dividend discount model to value common stock?
The model does not account for the risk of the stock
The model does not consider the present value of the dividends
The model does not consider that dividends may not be paid
The model does not account for small dividends
2. The dividend model that is most appropriate for a young company that pays small dividends now but is expected to increase dividends in a few years is the
zero-growth model
constant growth model
expansion growth model
multiple growth model