Suppose that the current dividend for a stock is Dtoday, the expected dividend growth rate is r, and the interest rate is i.If we ignore risk, which of the following represents the dividend-discount model formula for the fundamental price of a stock?
A) Dtoday/(i + g)
B) (i + g) /Dtoday
C) Dtoday(1 + g) /(i - g)
D) Dtoday/(i - g)
Correct Answer:
Verified
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