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(a) Considering Valuation Models, what type of dividend model is useful when we are examining/valuing one...

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Finance

(a) Considering Valuation Models, what type of dividend model isuseful when we are examining/valuing one with a temporary highgrowth rate? Fully Explain.

(b) Considering Stock Option Value, what can you say about therelationship between volatility and call option value? FullyExplain.

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3.8 Ratings (550 Votes)
aThe dividend model we can use the twostage dividend discount model Here we can use an example to explain suppose Company X just paid a dividend of 2 The dividends are expected to rise at a growth    See Answer
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(a) Considering Valuation Models, what type of dividend model isuseful when we are examining/valuing one with a temporary highgrowth rate? Fully Explain.(b) Considering Stock Option Value, what can you say about therelationship between volatility and call option value? FullyExplain.

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