Dividend Growth Model Assignment
February 19th, 2020
Which of the following is a disadvantage of the dividend growth model when estimating the cost of equity?
Select one:
a. It explicitly considers risk.
b. The estimated cost of equity is highly sensitive to the estimated growth rate.
c. It does not use discounted cash flow techniques.
d. It applies only to firms whose dividend growth rate fluctuates widely.
e. It only applies to companies which are not currently paying dividends.Get Finance homework help today