Which of the following is not a correct statement of the Constant Growth DDM?
A) It holds only when growth in dividends is expected to occur at the same rate indefinitely.
B) It holds only when kc < g.
C) It is a version of the dividend discount model for valuing common shares that assumes that dividends grow at a constant rate indefinitely.
D) Only future estimated cash flows and estimated growth in these cash flows are relevant.
Correct Answer:
Verified
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