Which of the following is an assumption of two stage dividend discount model?
A.
This model assumes two stages of growth, the first phase in which the growth rate is high and the second phase which represents steady state in which the growth rate is assumed to be stable and is expected to continue for a long-term.
B.
This model assumes two stages of growth, the first phase in which the growth rate is low and the second phase which represents steady state in which the growth rate is assumed to be stable and is expected to continue for a long-term.
C.
This model assumes two stages of growth, the first phase in which the growth rate is high and the second phase which represents steady state in which the growth rate is assumed to be stable and is expected to continue for next two years.
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