Question: . What is the added value of the multi-period models of discounted cash-flows over the constant-growth model in equity valuation analysis? They allow the firms

. What is the added value of the multi-period models of discounted cash-flows over the constant-growth model in equity valuation analysis?

  1. They allow the firms dividend growth to vary over time.

  2. They allow the investor to account for the investments risk.

  3. They are more complicated to estimate.

  4. They forecast a higher valuation.

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