A key point made by the Gordon-Growth model is that the

Question

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The Gordon-Growth model calculates the intrinsic value of a stock based on the current dividend, expected growth rate of dividends, and the required rate of return. This implies that the value of a stock is dependent on investors' expectations of the future profitability of a firm. Therefore, option A is the correct answer. Option B is incorrect because past trends do not necessarily indicate future behavior. Option C and D are also incorrect because dividends and risks respectively affect a stock's value.

A Key Point Made by the Gordon-Growth Model Is That