What is the model called that determines the present value of a stock based on its next annual dividend,the dividend growth rate,and the applicable discount rate?
A)zero growth
B)dividend growth
C)capital pricing
D)earnings capitalization
E)discounted dividend

Question

Quizplus · Accepted Answer

The model that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate is known as the Dividend Growth Model, also referred to as the Gordon Growth Model.

What Is the Model Called That Determines the Present Value