Describe the dividend discount model (DDM), P/E ratio, and economic value added (EVA) approaches used to value

Question:

Describe the discount model (DDM), P/E ratio, and economic value added (EVA) approaches used to value common stock. Under what conditions does each approach provide a good estimate of a stock’s value?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...