Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive than the dividend models and provides expected returns for companies based on aspects besides their historical dividend patterns.Which of the below is NOT one of these aspects?
A)The company's risk
B)The premium for taking on risk
C)The reward for waiting
D)Stable dividends

Question

Quizplus · Accepted Answer

Stable dividends are actually part of the dividend pricing model and are not a new aspect that needs to be included in a more inclusive pricing model. The other three aspects (the company's risk, the premium for taking on risk, and the reward for waiting) are all factors that should be considered in a more comprehensive pricing model.

Shortcomings of the Dividend Pricing Models Suggest That We Need