Business, 10.03.2020 07:08 leoiscoolcool

The dividend discount model is still useful even when the company pays no dividends. For example, Amazon has never paid a dividend, but we can anticipate that Amazon will eventually pay a considerable level of dividends in the future. Suppose that Amazon will pay its first dividend of $201 per share in 10 years.

Does this invalidate the divident discount model?

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The dividend discount model is still useful even when the company pays no dividends. For example, Am...

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