Question: answer asap plz Which statement is NOT correct? Multiple Choice DDM can be used to calculate the terminal value. As the payout ratio goes up,
Which statement is NOT correct? Multiple Choice DDM can be used to calculate the terminal value. As the payout ratio goes up, the stock price also goes up. According to DDM formula, there is a one period lag between the times of stock price and the dividend payment. If the payout ratio is fixed, the growth rates of earnings and dividends are same. According to DDM, the discount rate should be greater than the growth rate of dividends
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