Question: Why is it not feasible to use the dividend discount
Why is it not feasible to use the dividend discount model in the valuation of true growth companies?
Answer to relevant QuestionsDiscuss the major assumptions of the growth duration model. Why could these assumptions present a problem?A generalized model for the value of any asset is the present value of the expected cash flows:Where:N =life of the assetCFt = cash flow in Period tk=appropriate discount rateBoth stock and bond valuation models use a ...The constant-growth dividend discount model can be used both for the valuation of companies and for the estimation of the long-term total return of a stock. Assume: $20 = Price of a Stock Today8% = Expected Growth ...Assume a significant decline in credit balances at brokerage firms. Discuss why a technician would consider this bullish or bearish.Explain how you would construct a relative-strength ratio for an individual stock or an industry group. What would it mean to say a stock experienced good relative strength during a bear market?
Post your question