Which of the following features are advantages of the dividend growth model? I. easy to understand
II) model simplicity
III) constant dividend growth rate
IV) model's applicability to all common stocks

Question

Quizplus · Accepted Answer

Advantages of the dividend growth model include its simplicity and ease of understanding, which are represented by options I and II. Additionally, the constant dividend growth rate (option III) is a key feature of the model. However, the model is not applicable to all common stocks, so option IV is not correct.

Which of the Following Features Are Advantages of the Dividend