Question: Please specify whether you agree or disagree with the given arguments and provide the reasons concisely (not exceeding 3 sentences). Your classmate says The DDM

Please specify whether you agree or disagree with the given arguments and provide the reasons concisely (not exceeding 3 sentences).

Your classmate says The DDM (Dividend Discount Model) assumes infinite horizon of dividend payments, implying that a firm does not go bankrupt. Therefore, in DDM, we should set the required rate of returns to the risk-free rate. Do you agree with your classmate?

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