Question: Which statement is NOT correct? According to DDM formula, there is a one period lag between the times of stock price and the dividend payment.

Which statement is NOT correct? According to DDM formula, there is

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

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