Question: You have until 6:18 PM to complete this assignment. Part 1 Attempt 1/2 for 10 pts. About DDM, which statement is NOT CORRECT? By Dividend

You have until 6:18 PM to complete this assignment. Part 1

You have until 6:18 PM to complete this assignment. Part 1 Attempt 1/2 for 10 pts. About DDM, which statement is NOT CORRECT? 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. DDM cannot explain the following fact: stocks that don't pay dividend, such as, Amazon, Google, Facebook, etc., still have huge value. 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

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