This chapter discusses the discounted dividend and corporate valuation models for valuing common stocks. Two alternative approaches,

Question:

This chapter discusses the discounted and corporate valuation models for valuing common stocks. Two alternative approaches, the P/E multiple and EVA approaches, were presented. Explain each approach and how you might use each one to value a common stock.
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...