Which of the Following Is NOT a Correct Statement of the Constant

question 11

Multiple Choice

Which of the following is NOT a correct statement of the Constant Growth DDM?

• A)It holds only when growth in dividends is expected to occur at the same rate indefinitely.
• B)It holds only when k_c < g.
• C)It is a version of the dividend discount model for valuing common shares that assumes that dividends grow at a constant rate indefinitely.
• D)Only future estimated cash flows and estimated growth in these cash flows are relevant.

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Definitions:

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