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.

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Definitions:

Y-axis

The vertical axis in a coordinate plane, often used to represent values of a dependent variable in a graph.

X-axis

The horizontal axis in a graph or chart, on which values of one variable are plotted against the values of another (typically independent variable).

Slope

Slope is a measure of the steepness or incline of a line, indicating the rate at which y-values change with respect to x-values in a graph.

Time-series Graph

is a visual representation of data points ordered in time, typically shown on a graph with the x-axis representing time and the y-axis representing the variable of interest.