Question

The dividend growth model: I. assumes that dividends increase at a constant rate forever. II. can be used to compute a stock price at any point in time. III. can be used to value zero-growth stocks. IV. requires the growth rate to be less than the required return.

Answer 1

Answer:

I,  II,  III,  &  IV

Explanation:

The dividend growth model is just one of many analytic strategies devised by financial experts and investors to navigate thousands of available investment options and select the individual equities that are the best fit for the specific portfolio strategy.

Answer 2

Answer:

the correct answer is I, II, III, and IV

Explanation:

The dividend discount model is a method or technique which is used in valuing a company's stock value based on the premise that its stock value is worth the addition of all of its potential payments on dividend, which are discounted back to their current value. In other words, it is utilized in valuing stocks based on the net current value of the future dividends.