In what industry are investors likely to use the dividend discount model and arrive at a price close to the observed market price?

Question

Quizplus · Accepted Answer

The dividend discount model is commonly used in the utility industry, as utility companies typically have stable cash flows and pay out consistent dividends. Therefore, investors using this model are likely to arrive at a price close to the observed market price in the utility industry.

In What Industry Are Investors Likely to Use the Dividend