QuestionJune 15, 2025

What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate? zero growth dividend growth capital pricing earnings capitalization discounted dividend

What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate? zero growth dividend growth capital pricing earnings capitalization discounted dividend
What is the model called that determines the present value of a stock based on its next annual dividend, the
dividend growth rate, and the applicable discount rate?
zero growth
dividend growth
capital pricing
earnings capitalization
discounted dividend

Solution
4.4(214 votes)

Answer

Dividend Growth Model Explanation 1. Identify the model The model that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate is known as the **Dividend Growth Model**.

Explanation

1. Identify the model<br /> The model that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate is known as the **Dividend Growth Model**.
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