The dividend model that is most appropriate for a young company that pays small dividends now but is expected to increase dividends in a few years is the:
A)zero-growth model.
B)constant growth model.
C)expansion growth model.
D)multiple growth model.

Question

Quizplus · Accepted Answer

The multiple growth model is suitable for young companies with small current dividends but expected to increase dividends significantly in the future, as it allows for different growth rates over time.

The Dividend Model That Is Most Appropriate for a Young