What variables affect the value of a stock according to the dividend-growth model? What role do earnings play in this model?

 

How do interest rates and risk affect a stock's price in the Capital Asset Pricing Model? 

 

 

The efficient market hypothesis suggests that it is difficult to outperform the market on a consistent basis. Are there possible exceptions to the hypothesis that concern the valua-tion of common stock?

Answer rating: 100% (QA)

DividendGrowth Model Variables and Earnings Role 1 Dividend Growth Rate This is the rate at which a companys dividends increase over time A higher growth rate generally leads to a higher stock valuati... View the full answer