Shortcomings of the Dividend Pricing Models Suggest That We Need

question 49

Multiple Choice

Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive than the dividend models and provides expected returns for companies based on aspects besides their historical dividend patterns.Which of the below is NOT one of these aspects?

• A)The company's risk
• B)The premium for taking on risk
• C)The reward for waiting
• D)Stable dividends

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