In what industry are investors likely to use the dividend discount model and arrive at a price close to the observed market price?

Question

Quizplus · Accepted Answer

Investors are likely to use the dividend discount model for companies in the utility industry, as these companies typically have stable and predictable cash flows, allowing for more accurate dividend projections. This makes the model a reliable tool for arriving at a price close to the observed market price in this industry.

In What Industry Are Investors Likely to Use the Dividend