Explain the difficulties using dividend discount model in


1. A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk-free rate is 4.9 percent. What must the expected return on this stock be?

2. Explain the difficulties using the dividend discount model in real world valuation situation. what type of companies best lend themselves to using the DDM for valuation?

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Financial Management: Explain the difficulties using dividend discount model in
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