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3 years ago

The main reason for considering nonconstant growth in dividends is to allow for _ growth rates over _.

1 answer:

7 0

Based on the economic and financial analysis, the main reason for considering nonconstant growth in dividends is to allow for "Supernormal" growth rates over "some finite length of time."

This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.

However, there is the probability that it could do so for some number of years.

Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.

Hence, in this case, it is concluded that the correct answer is supernormal and some finite length of time.

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The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.

The main reason for considering nonconstant growth in dividends is to allow for _ growth rates over _.