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What Is the Name Given to the Model That Computes

Question 1

Multiple Choice

What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?


A) dividend growth model
B) capital gain model
C) present value model
D) equity pricing model
E) stock pricing model

Correct Answer:

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