Stock valuation models are dependent upon
A) expected dividends, future dividend growth, and an appropriate discount rate.
B) past dividends, flotation costs, and bond yields.
C) historical dividends, historical growth, and an appropriate discount rate.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

Stock valuation models focus on future expected dividends and growth, as well as an appropriate discount rate to account for the time value of money. Past dividends, flotation costs, and bond yields may be used as inputs in some models, but do not encompass the full range of factors needed to accurately value a stock. Historical dividends and growth may be relevant for analyzing past performance and making projections, but again, do not account for future changes and opportunities. Therefore, A is the best choice as it includes the most important and relevant factors for stock valuation models.

Stock Valuation Models Are Dependent Upon