Question: will thumbs up for correct answer, thank you! About DDM, which statement is NOT CORRECT? The stock price computed by DDM is ex-dividend price, meaning

will thumbs up for correct answer, thank you!

About DDM, which statement is NOT CORRECT? The stock price computed by DDM is ex-dividend price, meaning the price after the current dividend is paid out. The risk-adjusted discount rate in DDM can be used as cost of equity. DDM cannot explain the following fact: stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. By Dividend Discount Model (DDM), if a company is expected to never ever pays any cash in the future, its stock should be worth zero

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