Which of the following inputs is not needed when using the Gordon growth model to determine the market value of a share of stock?

Question

Quizplus · Accepted Answer

The Gordon growth model requires the required rate of return for the stock, the expected growth rate of the dividends, and the dollar amount of the dividend payments. The number of years the investor expects to own the stock is not necessary for the calculation of the market value of a share of stock using the Gordon growth model. The number of years the investor expects to own the stock is not needed in the Gordon growth model. The required rate of return, dollar amount of the dividend payment, and expected growth rate of the dividends are all necessary inputs.

Which of the Following Inputs Is Not Needed When Using