Which of the Following Are Weaknesses of the Dividend Growth

question 67

Multiple Choice

Which of the following are weaknesses of the dividend growth model?
I.Market risk premium fluctuations
II.Lack of dividends for some firms
III.Reliance on historical beta
IV.Sensitivity of model to dividend growth rate

• A)II only
• B)I and II only
• C)I and III only
• D)II and IV only
• E)I, II, III, and IV

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Definitions:

Aristotle

An ancient Greek philosopher and polymath whose extensive works on various subjects laid foundational principles in Western philosophy and science.

Free Action

An action performed out of one's own volition, free from external constraints or coercion.

Conditions

Specific circumstances or factors affecting the way in which people live or work, especially with regard to their well-being.

Soft Determinists

Philosophers who believe that while human behavior is influenced by external factors, individuals still possess the ability to make choices, blending determinism with free will.