The Dividend Discount Model Should Not Be Used to Value

question 88

True/False

The dividend discount model should not be used to value stocks in which the dividend does not grow.

---

Definitions:

Capacity

The maximum amount that something can contain or produce, often related to production or processing facilities.

Control

In management, the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

Continuous Improvement

A persistent attempt to better products, services, or processes by achieving gradual and radical enhancements.

Inverted Organizations

Organizations where decision-making authority and power are decentralized to the lower levels of the organizational hierarchy, closer to the customer.