When evaluating a project,the dividend growth model:

Question

Quizplus · Accepted Answer

The dividend growth model is a method used to value stocks based on the assumption that the stock's price is determined by the expected future dividends. This model can be applied to dividend-paying firms that have a stable growth rate and pay increasing dividends. However, it can also be used for projects, as long as the expected future cash flows can be modeled as dividends. The model is relatively simple to use, as it only requires estimating the expected dividend growth rate and discount rate. Therefore, the best choice is D - the dividend growth model is relatively simple to use.

When Evaluating a Project,the Dividend Growth Model: &Nbsp;