Question: To modify the dividend - discount model to include risk, a change needs to be made to the interest rate when calculating present value. Which
To modify the dividenddiscount model to include risk, a change needs to be made to the interest rate when calculating present value. Which of the following is it
Multiple choice question.
It must include the riskfree return and a risk premium.
It must include the coupon rate on a bond from the same firm.
It must be decreased in proportion to how risky the stock is
It must include a weighted average of recent interest rates.
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