Question: Which statement is NOT correct? Multiple Choice As the payout ratio goes up, the stock price also goes up. DDM can be used to calculate

Which statement is NOT correct? Multiple Choice As the payout ratio goes up, the stock price also goes up. DDM can be used to calculate the terminal value. According to DDM, the discount rate should be greater than the growth rate of dividends. 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

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