Assumptions of the Dividend Discount Model

Assumptions of the Dividend Discount Model

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Question

Which of the following are assumptions of the dividend discount model?

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Explanations

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A. B. C. D.

Explanation

The assumptions of the Dividend Discount Model are: (1) Dividends grow at a constant rate; (2) The constant growth rate will continue for an infinite period; (3)

The required rate of return is greater than the growth rate.