Question: Which statement is NOT correct? Multiple Choice O As the payout ratio goes up, the stock price also goes up. O According to DDM formula,

Which statement is NOT correct?

Multiple Choice O As the payout ratio goes up, the stock price also goes up. O According to DDM formula, there is a one period lag between the times of stock price and the dividend payment. O According to DDM, the discount rate should be greater than the growth rate of dividends. O If the payout ratio is fixed, the growth rates of earnings and dividends are same. O DDM can be used to calculate the terminal value

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