Which of the Following Is a Limitation of the Dividend-Discount

question 41

Multiple Choice

Which of the following is a limitation of the dividend-discount model?

• A) It cannot handle negative growth rates.
• B) It requires accurate dividend forecasts, which is not possible.
• C) It requires that the growth rate always be higher than the required rate of return, which is not realistic.
• D) It does not consider past earnings and performance.

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