The dividend growth model CANNOT be used in which of the following? a. When dividends are expected to grow every year.  b. When the payout ratio is constant. c. When dividends are expected to grow every quarter.  d. When the payout is greater than the amount earned.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section14.8: The Residual Distribution Model In Practice
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The dividend growth model CANNOT be used in which of the following?

a. When dividends are expected to grow every year. 

b. When the payout ratio is constant.

c. When dividends are expected to grow every quarter. 

d. When the payout is greater than the amount earned. 

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