A common problem when the sustainable growth rate to estimate a stock's intrinsic value is:
A) disagreement over how to calculate the company's ROE.
B) the use of a discount rate that is greater than payout ratio.
C) the unpredictable nature of dividend payouts
D) sensitivity to year-to-year fluctuations in a company's earnings
E) the need for growth companies to retain a greater proportion of earnings than value companies
Correct Answer:
Verified
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