Marian read in a financial magazine that the discounted dividends valuation model of common stock defines the value of a share of common stock as the ________ value of the infinite stream of future ________.

Question

Quizplus · Accepted Answer

The discounted dividends valuation model of common stock defines the value of a share of common stock as the present value of the infinite stream of future dividends. Therefore, choice D (present; dividends) is the correct option. The other choices are incorrect as they either use future instead of present value or use earnings instead of dividends.

Marian Read in a Financial Magazine That the Discounted Dividends