The Dividend-Discount Model is the simplest model to use if you want to value a firm that consistently pays out its earnings as dividends.

Name: The Dividend-Discount Model is the simplest model to use if you want to value a firm that consistently pays out its earnings as dividends.
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The name itself suggests that this model is helpful in valuing firms that pay out dividends regularly. It assumes that the value of a firm is equal to the present value of all future dividends it is expected to pay.

The Dividend-Discount Model Is the Simplest Model to Use If