The constant growth dividend model uses the:

Question

Quizplus · Accepted Answer

The constant growth dividend model requires an estimated growth rate in dividends, as it is used to calculate the present value of a stock's expected future dividends. Historical growth rates in dividends or earnings may not accurately reflect the company's future performance, which is necessary for making investment decisions using this model. Therefore, an estimated growth rate in dividends is the best choice.

The Constant Growth Dividend Model Uses The