Consider each of the following statements, state whether you believe they are true or false and explain your choice of answer (I) The dividend valuation model can only be used for determining the share price if a company is currently paying dividends and those dividends are expected to grow at a constant rate. (ii) The fact that share prices may be highly volatile does not necessarily mean that the stock market is inefficient. (iii) Newly listed companies are much more difficult to value using the dividendvaluation model than are companies with a long history of being listed on the stock exchange.
Consider each of the following statements, state whether you believe they are true or
false and explain your choice of answer
(I) The dividend valuation model can only be used for determining the share
price if a company is currently paying dividends and those dividends are
expected to grow at a constant rate.
(ii) The fact that share prices may be highly volatile does not necessarily mean
that the stock market is inefficient.
(iii) Newly listed companies are much more difficult to value using the dividendvaluation model than are companies with a long history of being listed on the stock exchange.
(iv) The dividend valuation model only takes account of financial payments to shareholders and as such does not take account of intangible factors such as brand loyalty,
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