Stock valuation models are dependent upon
A) expected dividends, future dividend growth and an appropriate discount rate.
B) past dividends, flotation costs and bond yields.
C) historical dividends, historical growth and an appropriate discount rate.
D) all of these.

Question

Quizplus · Accepted Answer

Stock valuation models are dependent upon expected dividends and future dividend growth, as well as an appropriate discount rate to account for the time value of money. Past dividends and historical growth may provide some insight, but they are not the only factors considered in stock valuation. Flotation costs and bond yields are not typically used in stock valuation models.

Stock Valuation Models Are Dependent Upon