Which of the Following Is a Problem Using the Dividend

question 29

Multiple Choice

Which of the following is a problem using the dividend discount model to value common stock?

• A)The model does not account for the risk of the stock.
• B)The model does not consider the present value of the dividends.
• C)The model does not consider that dividends may not be paid
• D)The model does not account for small dividends.

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Definitions:

Subcontractors

Individuals or companies hired by a primary contractor to perform specific tasks as part of a larger project.

Vendors

Businesses or individuals that supply goods or services to another business.

Timesheet

A timesheet is a document or tool used to track the amount of time an employee has worked on various tasks or projects.

Stopwatch

A tool used to measure the amount of time elapsed from a particular time when activated to the time of deactivation.