A major limitation of the dividend discount model (DDM) is that _______________. a. It is extremely complicated
Question:
A major limitation of the dividend discount model (DDM) is that _______________.
a. It is extremely complicated to use
b. It cannot be used with companies that do not pay dividends
c. It must always be used in conjunction with another metric
d. None of the above
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
d None of the above The main limitation of the div...View the full answer
Answered By
Marvine Ekina
Marvine Ekina
Dedicated and experienced Academic Tutor with a proven track record for helping students to improve their academic performance. Adept at evaluating students and creating learning plans based on their strengths and weaknesses. Bringing forth a devotion to education and helping others to achieve their academic and life goals.
PERSONAL INFORMATION
Address: , ,
Nationality:
Driving License:
Hobbies: reading
SKILLS
????? Problem Solving Skills
????? Predictive Modeling
????? Customer Service Skills
????? Creative Problem Solving Skills
????? Strong Analytical Skills
????? Project Management Skills
????? Multitasking Skills
????? Leadership Skills
????? Curriculum Development
????? Excellent Communication Skills
????? SAT Prep
????? Knowledge of Educational Philosophies
????? Informal and Formal Assessments
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Related Video
This video discusses the fundamental idea and workings of the dividend discount approach to computing the present value of a share. The video explains why and how to compute share present values as well as how dividend growth may impact market value calculations.
Students also viewed these Business questions
-
An experiment calls for 0.1865 mol of urea, CO(NH2)2. How many grams urea must be weighed out? The molar mass of urea is 60.06 g/mol. O (1) 11.20 g (2) 322.0 g (3) 0.003105 g (4) 16.88 g (5) none of...
-
If f(x) = cos(x) and g(x) x2 for -
-
Explain why the coffee shop manager should measure elasticity using the mid-point method in his calculations.
-
As the United States has struggled with the growing obesity of its citizens, diets have become big business. Among the many competing regimens for those seeking weight reduction are the Atkins and...
-
Classify the following accounts as current assets, noncurrent assets, current liabilities, noncurrent liabilities, or stockholders equity. Balance Sheet Classification Account Property, plant, and...
-
Verify the principle of superposition, which states that if \(\phi_{1}\) and \(\phi_{2}\) are solutions to potential flow then \(\phi=c_{1} \phi_{1}+c_{2} \phi_{2}\) is also a solution. Also show...
-
Are Americans superstitious? A Harris (Feb. 2013) poll of over 2,000 adult Americans was designed to answer this question. One survey item concerned the phrase "see a penny, pick it up, all day long...
-
A project has an initial cost of $35,000, expected net cash inflows of $14,000 per year for 11 years, and a cost of capital of 10%. What is the project's PI? (Hint: Begin by constructing a time...
-
Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Techs...
-
Odon Corp. paid dividends today in the amount of $1.50 per share. If Odon will pay dividends of $5.00 10 years from today, what is the annual dividend growth rate over this 10-year period?
-
Mind Max Inc. has a dividend policy that increases annual dividends by 3% each year. If last years dividend was $2.00, the company intends to stay in business for 50 years, and an investor wants a 9%...
-
Fill in the blank to correctly complete each sentence. A(n)__________ is an equation satisfied by every number that is a meaningful replacement for the variable.
-
In the context of an LBO transaction, consider the case of WSP Manufacturing, a company targeted for acquisition. WSP has recently invested in new machinery to increase its production capacity and...
-
You want to buy a $26,000 car. You can make a 10% down payment, and will finance the balance with a 5% interest rate for 48 months (4 years). What will your monthly payments be?
-
You have reached retirement age, and your job is to create a personal profile that illuminates what types of income, assets, obligations, and liabilities you might have. Professional Information...
-
The common stock of Northside Store sells for $38.42 per share. The stock is expected to pay an annual dividend of $1.80 next year and increase that amount by 4 percent annually thereafter. What is...
-
John purchased a new car in 2023 for a price of $37,000. If he claims first-year bonus depreciation, what is the greatest allowable depreciation deduction he may claim for the vehicle in 2023?
-
Elise Surgical Products Company produces diverse lines of surgical instruments. It is considering a proposal suggested by one of its sales managers, to produce dissection instrument sets for use by...
-
Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...
-
Discuss some of the likely problems facing the marketing manager in a small firm who plans to search the Internet for information on competitors marketing plans.
-
Explain the key characteristics of the scientific method and show why these are important to managers concerned with research.
-
How is the situation analysis different from the data collection step? Can both these steps be done at the same time to obtain answers sooner? Is this wise?
-
Ryan Street Barber Shop pays $35 per month for water for the first 14,000 gallons and $1.75 per thousand 10,000 gallons, 17,000 gallons, and 21,000 gallons. (Do not round interim calculations. Round...
-
How do theories of globalization and transnationalism reconfigure conventional understandings of social boundaries, community, and identity in an increasingly interconnected world ?
-
Munoz Manufacturing produces two keyboards, one for laptop computers and the other for desktop computers. The productio process is automated, and the company has found activity-based costing useful...
Study smarter with the SolutionInn App