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.

---

Definitions:

Age Two

Typically refers to the developmental stage of human life at two years old, characterized by rapid physical growth and cognitive development.

Interactionist Perspective

A theoretical approach in sociology that focuses on how individuals shape and are shaped by society through their interactions.

Gender Norms

The societal expectations and conventions that dictate behaviors, actions, and roles based on one's perceived gender.

Mass Media

Various forms of media, including television, newspapers, radio, and the internet, that reach large audiences simultaneously and have significant influence on public opinion and culture.