Question

Why is it not feasible to use the dividend discount model in the valuation of true growth companies? 

   Why is it not feasible to use the dividend discount model in the valuation of true growth companies?
Investment Analysis and Portfolio Management
Investment Analysis and Portfolio Management
Frank K. Reilly,… 10th Edition
Chapter 14, Problem 19 ↓

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It assumes that the company pays dividends and that these dividends grow at a constant rate.  Show more…

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Why is it not feasible to use the dividend discount model in the valuation of true growth companies?
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