The constant-growth dividend model tells us that the current price of a share is the next period divided by the difference between the discount rate and the dividend growth rate.

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This statement is true. The constant-growth dividend model, also known as the Gordon Growth Model, is often used to estimate the intrinsic value of a stock by assuming that its dividends will grow at a constant rate indefinitely. The formula is: P0 = D1 / (r - g), where P0 is the current price, D1 is the expected dividend in the next period, r is the required rate of return or discount rate, and g is the expected dividend growth rate.

The Constant-Growth Dividend Model Tells Us That the Current Price