Asked by Hikkmatjit Saini on Jul 21, 2024

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The corporate valuation model cannot be used unless a company doesn't pay dividends.

Corporate Valuation Model

A financial model used to determine the overall value of a corporation by evaluating its ability to generate future profits.

Dividends

Dividends are a portion of a company's earnings that are paid to shareholders, typically on a quarterly basis, as a reward for investing in the company's equity.

  • Understand the effect of dividend policy on the application of the corporate valuation model.
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HI
Haroon IqbalJul 25, 2024
Final Answer :
False
Explanation :
The corporate valuation model can be used for companies that do pay dividends, as it takes into account both dividends and earnings growth.