The dividend growth model states that the market price of a stock is only affected by the amount of the dividend.

Name: The dividend growth model states that the market price of a stock is only affected by the amount of the dividend.
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The dividend growth model states that the market price of a stock is determined not only by the amount of the dividend but also by the growth rate of those dividends and the discount rate (required rate of return).

The Dividend Growth Model States That the Market Price of a Stock