(a) Describe in which circumstance the Dividend Discount Model (DDM) cannot be used to determine the price...

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(a) Describe in which circumstance the Dividend Discount Model (DDM) cannot be used to determine the price of a stock.

(b) The Gordon Growth Model (GGM) is a popular variation of the DDM and its main assumption is that the future dividends of a company will grow at a constant rate. Explain in which circumstance this model is worthless.

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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Posted Date: Feb 07, 2024 05:23 AM

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(a) Describe in which circumstance the Dividend Discount Model (DDM) cannot be used to determine the price...

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When the DDM and GGM Dont Work While the Dividend Discount Model DDM and its popular variantthe Gord... View the full answer

Principles Of Finance

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