Hence have serious practical limitations

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Reference no: EM131821527

1. It is important to acknowledge that growth or dividend pricing Models are essentially abstractions of reality and hence have serious practical limitations. The issues relating to accuracy include:

a. estimates of growth rates.

b. estimates of the market rate of interest.

c. the fact that the denominator in the Gordon model is the difference between two numbers that can be close together.

d. All of the above

2. Which of the following is not a financial market?

a. Bond market

b. A market in which small business owners buy and sell their companies

c. Stock market

d. All of these are financial markets

Reference no: EM131821527

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