What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?

Question

Quizplus · Accepted Answer

The model described in the question is commonly known as the dividend growth model, which calculates the present value of a stock based on the expected future dividends and discount rate. Option A and B are not specific enough and could refer to various models. Option C is a general term that doesn't accurately describe this particular model. Option E is too broad and could refer to various pricing models.

What Is the Name Given to the Model That Computes