In the one-period valuation model,the value of a share of stock today depends upon
A)the present value of both dividends and the expected sales price.
B)only the present value of the future dividends.
C)the actual value of the dividends and expected sales price received in one year.
D)the future value of dividends and the actual sales price.

Question

Quizplus · Accepted Answer

The one-period valuation model calculates the current value of a stock based on the present value of the expected dividend and the expected sales price at the end of the period.

In the One-Period Valuation Model,the Value of a Share of Stock