In the dividend discount model,which of the following are not incorporated into the discount rate?
A)Real risk-free rate
B)Risk premium for stocks
C)Return on assets
D)Expected inflation rate
E)None of the above

Question

Quizplus · Accepted Answer

The dividend discount model only incorporates the risk-free rate and the risk premium for stocks into the discount rate. The return on assets and the expected inflation rate are not part of the discount rate calculation.

In the Dividend Discount Model,which of the Following Are Not