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The Stock Valuation Model That Determines the Current Stock Price

Question 292

Multiple Choice

The stock valuation model that determines the current stock price as the next dividend divided by the (discount rate less the dividend growth rate) is called the:


A) Zero growth model.
B) Dividend growth model.
C) Capital Asset Pricing Model.
D) Earnings capitalization model.
E) Perpetual growth model.

Correct Answer:

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