Question: The dividend growth model: Question 7 Answer a . Generally provides a more accurate answer than CAPM. b . Uses beta to measure the systematic

The dividend growth model:
Question 7Answer
a.
Generally provides a more accurate answer than CAPM.
b.
Uses beta to measure the systematic risk of a firm.
c.
Is only as reliable as the estimated rate of growth.
d.
Considers the risk that future dividends may vary from their estimated values.
e.
Can only be used if historical dividend information is available.

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