Which of the following statements is FALSE?
A) We cannot use the general dividend-discount model to value the stock of a firm with rapid or changing growth.
B) The dividend-discount model values the stock based on a forecast of the future dividends paid to shareholders.
C) As firms mature, their growth slows to rates more typical of established companies.
D) The simplest forecast for the firm's future dividends states that they will grow at a constant rate; i.e. forever.
Correct Answer:
Verified
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