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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Definitions:

American Expansionism

A policy or ideology aimed at extending the territorial, political, or economic influence of the United States across North America and beyond.

Chinese

Relating to China, its people, languages, or culture.

Exclusion Laws

Laws implemented to restrict or prohibit certain groups of people, often based on race or nationality, from immigrating to or residing in a country.