Which of the following is NOT an assumption of the constant growth dividend discount model (DDM)?
A) The growth rate of the firm is higher than the overall growth rate of the economy.
B) Dividend payout is constant.
C) ROE is constant.
Answer: A
A) The growth rate of the firm is higher than the overall growth rate of the economy.
B) Dividend payout is constant.
C) ROE is constant.
Answer: A
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.