Under most dividend valuation models, a stock with an expected level dividend (zero dividend growth) would have no value.

Question

Quizplus · Accepted Answer

Under most dividend valuation models, a stock with an expected level dividend (zero dividend growth) would still have value, calculated as the present value of the expected future dividends. The value is determined by discounting the perpetual dividends by the required rate of return.

Under Most Dividend Valuation Models, a Stock with an Expected