Question

The constant-growth dividend discount model (ddm) can be used only when the ___________. growth rate is greater than or equal to the required return growth rate is greater than the required return growth rate is less than the required return growth rate is less than or equal to the required return

Answer 1

The constant-growth dividend discount model (ddm) can be used only when the growth rate is less than the required return. The dividend disount model is a way to value the company's stock priced. This theory states that the stock is worth the total amount of the stock divide by the payments from their initial present value.