Shortcomings of the Dividend Pricing Models Suggest That We Need

question 49

Multiple Choice

Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive than the dividend models and provides expected returns for companies based on aspects besides their historical dividend patterns.Which of the below is NOT one of these aspects?

• A)The company's risk
• B)The premium for taking on risk
• C)The reward for waiting
• D)Stable dividends

---

Definitions:

Global Capital Market

The worldwide financial markets in which money flows for the purpose of investment and financing across different countries.

Volatile Exchange Rates

Exchange rates that fluctuate widely in a short period of time, affecting the value of currencies traded on the foreign exchange market.

Accounting Standards

The rules and guidelines that companies must follow when reporting financial data.

Disclosure Standards

The requirements and guidelines set by regulatory bodies for the information that must be provided by publicly traded companies to protect investors and maintain transparency.