The dividend discount model does not hold for investors who have a preference for capital gains.

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The dividend discount model (DDM) is a method of valuing a company's stock price based on the theory that its stock is worth the sum of all its future dividend payments, discounted back to their present value. It does not inherently exclude investors with a preference for capital gains, as the model focuses on the intrinsic value of the stock based on dividends, which can be a component of an investor's total return, including capital gains.

The Dividend Discount Model Does Not Hold for Investors Who