The variant of the dividend discount model that is most appropriate for a start-up company that pays smaller dividends early in its life but is expected to increase them after several years would be the:
A) zero-growth model.
B) constant growth model.
C) expansion growth model.
D) multiple growth model.

Question

Quizplus · Accepted Answer

The multiple growth model is most appropriate for a start-up company that pays smaller dividends early in its life but is expected to increase them after several years. This model allows for different growth rates to be applied at different times, reflecting the company's anticipated growth phases.

The Variant of the Dividend Discount Model That Is Most