The Dividend Discount Model (DDM)cannot Be Used to Value the Stock

question 52

True/False

The dividend discount model (DDM)cannot be used to value the stock of a company that has never paid a dividend and does not expect to pay a dividend in the near term.

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Definitions:

High-Potential

Refers to individuals or assets with the capacity to develop significantly beyond their current level of performance or value, often focusing on future leadership or investment growth.

Niche Market

A specialized segment of a larger market, defined by its unique preferences, needs, or identity, often underserved by mainstream providers.

Product/Service

The combination of goods and services offered by a company to meet consumer needs and wants.

Loves to Do

Expresses the enjoyment or passion someone has for engaging in a particular activity or job.