The constant dividend model is difficult to rely on in practice because companies rarely maintain constant dividends.

Name: The constant dividend model is difficult to rely on in practice because companies rarely maintain constant dividends.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Companies often change their dividends based on various factors such as financial performance, market conditions, and growth opportunities. Therefore, it is difficult to rely on the constant dividend model in practice.

The Constant Dividend Model Is Difficult to Rely on in Practice