Which of the following statements about the constant growth dividend discount model (DDM) in its application to investment analysis is least accurate? The model:

Which of the following statements about the constant growth dividend discount model (DDM) in its application to investment analysis is least accurate? The model:



A) is best applied to young, rapidly growing firms.


B) can't be applied when g > K.


C) is inappropriate for firms with variable dividend growth.



Answer: A


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