Question: Question 19 What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount

Question 19

What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?

Group of answer choices

Capital gain model

Dividend growth model

Present value model

Equity pricing model

Stock pricing model

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!