The corporate valuation model cannot be used unless a company doesn't pay dividends.

Question

Quizplus · Accepted Answer

The corporate valuation model can still be used for companies that pay dividends. It calculates the total value of the company based on expected future cash flows, which include both dividends and other sources of income. However, the model assumes that the dividends will be constant, so changes in dividend policy may affect the accuracy of the valuation.

The Corporate Valuation Model Cannot Be Used Unless a Company