Which of the following does not affect the discount rate in the dividend discount model?

Question

Quizplus · Accepted Answer

The dividend discount model calculates the intrinsic value of a stock based on its future dividends. The discount rate used in the model is affected by factors such as the risk premium for stocks, the real risk-free rate, and the expected inflation rate. However, the return on assets is not a factor that affects the discount rate.

Which of the Following Does Not Affect the Discount Rate